Retail investors pile back into US equities

South Korean retail investors are returning to US equities, ramping up purchases of semiconductor stocks and benchmark exchange-traded funds as the won strengthens and the Kospi rally loses steam. Net purchases of US stocks by local investors reached $1.95 billion between July 1 and 16 on a settlement basis, the highest monthly total in five months, according to the Korea Securities Depository. The rebound follows an earlier slowdown, when retail investors turned net sellers in April and May bef

2026-07-22 15:33:05:00

Korea ETF pioneer issues rare warning on single-stock leveraged ETFs

Bae Jae-kyu, CEO of Korea Investment Management and widely regarded as the father of Korea's ETF market, urged investors to avoid single-stock leveraged ETFs despite his firm managing the products. The warning is highly unusual, marking a rare case of an asset manager publicly discouraging investment in products it offers. In a Facebook post Monday, Bae wrote, "People may criticize me for saying this, but I hope investors stop investing even now." "As the head of an asset manager that operates s

2026-07-21 14:52:30:00

FSS gave asset managers hours to pull ETF ads

South Korea's Financial Supervisory Service ordered asset managers to halt advertising for single-stock leveraged exchange-traded funds with only a few hours' notice, an unusually abrupt directive that left promotional campaigns in place over the weekend, industry sources said Monday. The FSS sent the notice late Thursday after the Financial Services Commission, the FSS and the Korea Exchange jointly unveiled measures to tighten oversight of the products. The notice instructed firms to "immediat

2026-07-20 15:59:36:00

Leveraged chip ETFs test Korea's market structure

Surging trading in South Korea's single-stock leveraged exchange-traded funds tracking Samsung Electronics and SK hynix is raising concerns that the products are no longer just following the market but beginning to amplify swings in the country's two biggest chip stocks — and, by extension, the Kospi. On some trading days, turnover in leveraged ETFs linked to SK hynix has reached as much as 65 percent of trading in the underlying stock. The unusually high ratio, analysts say, can magnify short-t

2026-07-15 17:11:48:00

Lee orders swift action on leveraged chip ETFs

President Lee Jae Myung on Wednesday ordered swift measures to address concerns over single-stock leveraged exchange-traded funds tied to Samsung Electronics and SK hynix, adding momentum to efforts to tighten safeguards for the products. Lee directed the Korea Exchange to quickly prepare supplementary measures and told Financial Supervisory Service Gov. Lee Chan-jin that the regulator appeared to have come under pressure over the ETFs. The remarks are expected to accelerate the government's rev

2026-07-15 14:45:17:00

Mirae Asset's Global X Japan tops 1 trillion yen in assets

Global X Japan, Mirae Asset Global Investments' Japanese exchange-traded fund unit, has surpassed 1 trillion yen ($6.17 billion) in assets under management, marking a major milestone as it rapidly expands its presence in Japan's ETF market. Mirae Asset said Monday that Global X Japan's AUM reached 1.14 trillion yen at the end of June. The company first crossed the 1 trillion-yen threshold in May and has continued to attract strong inflows. Established in 2019, Global X Japan was Japan's first ET

2026-07-13 15:01:23:00

No more single-stock leveraged ETFs? Korea weighs curbs

South Korea's ruling party has begun reviewing possible curbs on single-stock leveraged exchange-traded funds tied to Samsung Electronics and SK hynix, as regulators step up scrutiny of products that critics say are fueling market concentration and volatility. Asset managers expect no further listings of the products, while some industry officials have begun calling for existing funds to be delisted to cool what they describe as an overheated market. The products have grown rapidly since their d

2026-07-08 12:00:47:00

Global banks lift Korea growth outlook to 3% on chip exports

Major global investment banks have raised their average forecast for South Korea's economic growth this year to 3 percent, the Korea Center for International Finance said Monday, citing a semiconductor-led export boom. The average 2026 real gross domestic product growth forecast among eight major global investment banks rose to 3 percent at the end of June from 2.8 percent a month earlier, marking the first time the consensus has reached the 3-percent level. The outlook has steadily improved fro

2026-07-07 14:51:53:00

Korea raises shareholder hurdle for parent-backed subsidiary IPOs

The Financial Services Commission and the Korea Exchange on Monday unveiled draft guidelines that would make it harder for listed parent companies to pursue dual listings by separately listing subsidiaries. The move is aimed at strengthening minority shareholder protections and tackling the so-called Korea discount: Reforms would lengthen the IPO process and require parent companies to demonstrate that a subsidiary listing enhances, rather than undermines, shareholder value. The FSC said it rede

2026-07-06 15:28:02:00

NPS trims Samsung, adds SK hynix in rebalancing

The National Pension Service resumed rebalancing its domestic equity portfolio this month, but the pace of selling during the first three trading days was slower than investors had feared, suggesting the market impact may be less severe than expected. The NPS, the world's third-largest pension fund with more than 2,000 trillion won ($1.47 trillion) in assets under management, increased holdings in stocks including SK hynix, Hanwha Aerospace and Hybe while continuing to trim its overall domestic

2026-07-05 14:38:40:00