South Korea ETF Market Value Tops 500 Trillion Won for First Time as Retail Money Pours In

Samsung Electronics and SK Hynix Help Drive ETF Market Above 500 Trillion Won

100 Trillion Won Added in 42 Days

Average Daily Trading Value Hits 28 Trillion Won This Month

The market capitalization of exchange-traded funds listed in South Korea topped 500 trillion won ($370.4 billion) for the first time, underscoring a structural shift as retail investors move money out of deposits and real estate and into ETFs.

The milestone came as the Kospi climbed above 8,000 and AI-driven liquidity flowed into equities.

The combined market value of 1,132 ETFs listed in South Korea stood at 506.114 trillion won as of 11 a.m. on May 27, according to the Korea Exchange. It took 24 years for the market to exceed 500 trillion won after ETFs first debuted on the Kospi in October 2002.

ETF market capitalization crossed 100 trillion won in June 2023, then reached 200 trillion won in June 2025. It moved above 300 trillion won on Jan. 5, 2026, and topped 400 trillion won on April 15. Another 100 trillion won was added in just 42 days.

That means ETF market value has risen by more than 200 trillion won from 297.2703 trillion won at the end of last year in about five months. It moved above 400 trillion won on April 15, when the Kospi regained 6,000, and crossed 500 trillion won on May 27 as the benchmark index advanced past 8,000 and approached 8,400.

New single-stock leveraged ETFs tied to Samsung Electronics Co. and SK Hynix Inc. also helped push the market over the 500 trillion won mark on May 27. Sixteen such products were listed that day.

As of the same time, KODEX SK Hynix Single Stock Leverage had a market capitalization of 1.9243 trillion won, while KODEX Samsung Electronics Single Stock Leverage stood at 1.3003 trillion won. The 16 products had a combined market value of 5.1622 trillion won.

The ETF market's rapid growth is also increasing its influence on the broader stock market. Heavy inflows into ETFs are supporting gains in stock indexes, while rising indexes are lifting ETF values in return.

Through May 26, average daily trading value in the ETF market this month reached a record 28.3031 trillion won. That was equal to about 60% of the Kospi's average daily trading value.

Brokerages expect the market to continue expanding as the shift into ETFs accelerates, opening the door to a 600 trillion won ETF market. ETFs account for just 8% of the Kospi's total market capitalization, still below 20% in the US and 9% in Japan.

Some in the market also expect inflows to pick up further after the launch of single-stock leveraged ETFs. Eight asset managers, including Samsung Asset Management Co. and Mirae Asset Global Investments Co., introduced leveraged and inverse 2X products on May 27 tied to the gains and losses of Samsung Electronics and SK Hynix.

"South Korean household asset allocation has begun shifting away from deposits and real estate toward financial assets centered on ETFs and pensions," Kim Jin-young, an analyst at Kiwoom Securities Co., said. "ETFs are at the center of that money move."

Kang Kyung-ju, Hankyung.com reporter qurasoha@hankyung.com