Yeouido financial district in Seoul (Image courtesy of Yonhap)
SEOUL, Jan. 5 (Korea Bizwire) — South Korean investors poured record sums into exchange-traded funds last year, with both retail and foreign investors gravitating toward overseas equity benchmarks and high-growth thematic products, underscoring a broad shift in the country’s investment landscape.
According to data released Sunday by financial information provider Yonhap Infomax, individual investors’ most heavily purchased ETF in 2025 was the TIGER U.S. S&P 500, which drew net inflows of 3.64 trillion won ($2.7 billion).
Other top choices included ETFs tracking the U.S. S&P 500 and Nasdaq 100, reflecting Korean investors’ continued confidence in U.S. markets and technology stocks.
One notable exception was a leveraged inverse ETF tied to the KOSPI 200 futures index, which ranked second in net purchases by individuals despite posting a steep loss of more than 76 percent.
The product struggled as South Korea’s benchmark stock index surged more than 70 percent last year, highlighting the risks of speculative and hedging-oriented instruments.
Foreign investors showed a different preference, channeling the largest net inflows—about 438 billion won—into an ETF tracking China’s electric vehicle sector, which delivered a return of more than 30 percent over the year.
Yeouido financial district in Seoul (Image courtesy of Yonhap)
Among non-leveraged ETFs, the strongest performance came from products tied to artificial intelligence and next-generation semiconductors. An AI-focused high-bandwidth memory ETF posted gains of more than 170 percent, while funds linked to nuclear power, defense and gold mining also recorded triple-digit returns, reflecting last year’s dominant investment themes.
Overall, overseas index ETFs accounted for roughly one-third of total ETF assets, leading the market’s expansion. Data from the Korea Securities Depository show that total ETF assets reached 98.2 trillion won at the end of December, up more than 42 trillion won from the start of the year.
By asset manager, Samsung Asset Management emerged as the clear market leader, with ETF assets rising 71 percent to 113.5 trillion won, giving it a 38 percent share of the market. Mirae Asset Global Investments followed with 97.5 trillion won, while Korea Investment Management climbed to third place after nearly doubling its ETF assets over the year.
The figures point to a maturing ETF market in South Korea, increasingly shaped by global exposure and thematic bets tied to technology and geopolitical trends, even as riskier products continue to attract speculative interest.
Ashley Song (ashley@koreabizwire.com)
