South Korea's bond-mixed exchange-traded funds (ETFs) targeting retirement pension accounts are surging in popularity, with combined assets surpassing 12 trillion won as the country's pension investment culture shifts from "deposits" to "investments."
As asset managers' ETF strategies evolve rapidly in response to this shift, product competition that previously centered on index and thematic ETFs is moving toward developing bond-mixed ETFs aimed at pension account investment demand.
According to the Korea Financial Investment Association on Tuesday, the assets under management (AUM) of domestic bond-mixed ETFs grew from 1.72 trillion won at the end of 2024 to 4.63 trillion won at the end of 2025. As of the 2nd of this month, the figure had swelled to 12.40 trillion won, establishing the category as a flagship product group for pension investors.
The market expansion stems from retirement pension management regulations. Under the current system, defined contribution (DC) pension plans and individual retirement pensions (IRPs) cap risky asset investments at 70%. The remaining 30% must be filled with safe assets such as deposits or bonds.
In contrast, bond-mixed ETFs with an equity portion of less than 50% are classified as safe assets. From the investor's perspective, using bond-mixed ETFs allows them to satisfy safe-asset regulations while raising the overall equity investment share of their account to as much as 85%.
A leading example is KB Asset Management's "RISE Samsung Electronics SK hynix Bond Mixed 50," which surpassed 3 trillion won in net assets within three months of listing. Analysts say investors chose the product because it allows exposure to leading semiconductor stocks such as Samsung Electronics (005930.KS) and SK hynix (000660.KS) while meeting safe-asset regulations within pension accounts. The "KODEX Samsung Electronics SK hynix Bond Mixed 50," listed in April this year, also drew 384.7 billion won in inflows within a month.
Investment targets have recently diversified as well. Various products have emerged, including "PLUS Silver Bond Mixed," which holds physical silver and government bonds at 50% each, and "1Q KOSDAQ150 Bond Mixed 50 Active," which combines KOSDAQ150 with short-term government and public bonds. This month, "1Q Hyundai Motor Kia Bond Mixed" and "WON Samsung Electronics Hyundai Motor Bond Mixed" were launched.
The industry views the bond-mixed ETF boom as more than a passing product trend, seeing it as a symbol of change in the retirement pension market. "Recently, investors have been actively managing returns using ETFs, and product structures themselves are becoming pension-friendly," said Kim Do-hyung, head of the ETF consulting division at Samsung Asset Management. "In particular, as investment demand for the domestic stock market grows, products combining large-cap stocks with bond mixes are gaining popularity."
