South Korea's exchange-traded fund (ETF) market has surpassed 400 trillion won ($292 billion) in net assets for the first time, cementing its status as the nation's preferred retail investment vehicle after adding 100 trillion won in just 100 days since crossing the 300 trillion won mark in January.
The milestone comes as a buoyant domestic stock market coincides with expanded ETF investment through retirement pension accounts (DC and IRP), fueling expectations that total assets could reach 500 trillion won by year-end.
According to Korea Exchange data released Thursday, total assets under management for domestically listed ETFs stood at 398.1 trillion won as of April 14. The KOSPI closed at 6,091.39 that day, up 123.64 points (2.07%) on expectations that the U.S. and Iran would resume ceasefire negotiations, making the 400 trillion won breakthrough virtually certain.
Average daily ETF trading volume this year has reached 17.4 trillion won, more than five times the 3.5 trillion won recorded in 2024.
The pace of asset growth has accelerated dramatically. After first hitting 100 trillion won on June 29, 2023, it took 706 days to reach 200 trillion won on June 4, 2025. The climb from 200 trillion to 300 trillion won took just 215 days, while the latest 100 trillion won addition required only about 100 days.
Market analysts point to the domestic stock market rally and pension market expansion as key drivers. Despite Middle East conflict risks, the Korean market has posted solid gains of 45% compared to major global indices, with semiconductor stocks expected to continue their upward trajectory. Trading convenience, low costs, and diversification benefits have also attracted steady inflows from retirement pension accounts.
"Just a few years ago, only four or five out of ten investors held ETFs, but now it's seven or eight, showing how many new investors have entered the market," said Kim Jung-hyun, head of the ETF business group at Shinhan Asset Management. "We expect assets to surpass 500 trillion won by year-end."
