ETF Assets Exceed 500 Trillion Won, Overtaking KOSDAQ Market Cap

The total net assets of South Korea's Exchange Traded Fund (ETF) market have surpassed 500 trillion won, marking the first time they have overtaken the KOSDAQ market's overall market capitalization. This historic reversal in market size occurred 21 years after ETFs were first introduced in Korea in 2002.

As of May 25th, the total net assets of domestic ETFs reached 519.7474 trillion won, while the KOSDAQ market's total market capitalization stood at 499.3039 trillion won on the same day.

The surpassing of the KOSDAQ market cap by ETF net assets is the first occurrence since ETFs were first launched in Korea in October 2002, signaling a shift in overall market investment sentiment and fund flows. The ongoing sluggishness in the KOSDAQ market, which has a high proportion of individual investors, is heightening concerns among investors.