Significant Influx of Funds into Korean ETFs Listed Overseas
The consistent upward trend in the domestic stock market is leading to a substantial influx of capital into Korean ETFs listed overseas, emerging as a new major source of fund flow. Notably, last week saw 123.9 billion KRW and 80.8 billion KRW being introduced into the domestic stock market from the U.S. and UK ETF markets, respectively. Of these, the 'iShares MSCI Korea' ETF alone received a net inflow of 33.6 million USD, reflecting South Korea's increased significance in the international market.
In the MSCI Emerging Markets Index, South Korea's weight has rebounded to 11% over the past six months, attributed mainly to the stock price recovery of Samsung Electronics and SK Hynix. Foreign investment capital continues to flow in, with approximately 4.1 trillion KRW having been directed into Korean equities this year via ETFs tracking the MSCI Emerging Markets Index in the U.S. and UK markets. Particularly, the global defense investment fund 'VanEck Defense UCITS ETF' has more than doubled its weight in South Korean stocks.
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