Korea's exchange-traded fund (ETF) market is expanding at breakneck speed alongside a stock market boom, but the Korea Exchange's team responsible for listing reviews has remained unchanged for years. With the number of products and fund inflows surging, industry concerns are mounting over review delays and work overload.
According to the office of Rep. Kim Sang-hoon of the People Power Party on Wednesday, the Korea Exchange's ETF listing-related staff stood at five in 2021, seven in 2022, and five in each of 2023, 2024, 2025 and 2026. After a brief increase in 2022, the headcount dropped back and has remained flat ever since.
Given the pace of market expansion, the staffing level amounts to effectively standing still, observers say. The number of domestically listed ETFs rose from 935 at the end of 2024 to 1,058 at the end of 2025, and reached 1,107 as of Wednesday. Total net assets under management (AUM) in the ETF market stood at 466.1 trillion won as of the previous day.
Large ETFs are also multiplying rapidly. According to financial data provider FnGuide, 96 ETFs had net assets exceeding 1 trillion won based on the closing price on the 11th of this month, up 29 from 67 at the end of last year. Industry officials say that at the current pace, net assets could surpass 500 trillion won within the first half of the year.
The ETF market has also been diversifying quickly beyond simple index-tracking products into monthly dividend, covered call, derivative, active and thematic products. The more complex the product structure, the more items must be reviewed during the exchange's screening process, industry officials explained.
Conditions for building expertise within the review team, however, remain limited, critics say. The average tenure at the ETF listing department was 1.5 years in 2021, 1.1 years in 2022, 2.2 years in 2023, 2.4 years in 2024, 2.1 years in 2025 and 2.3 years in 2026. Given that understanding product structures and market experience are crucial for ETFs, frequent staff rotations could undermine review efficiency, the industry says.
As a result, some in the field have even likened ETF listing reviews to a "lottery" on which reviewer is assigned. When newly reassigned staff take on reviews following annual personnel reshuffles, product assessments and inquiries can drag on, pushing back listing schedules beyond expectations. In the ETF market, the timing of a product launch itself affects fund inflows and commercial success, meaning review speed directly translates into competitiveness for asset managers.
"The ETF market is growing in scale while product structures are also becoming more complex at a rapid pace, but the exchange's review staff and expertise remain stuck at the same level," Rep. Kim said. "Unless review staffing is expanded and expertise strengthened to match the pace of market growth, it could ultimately burden investor protection and market stability."
