South Korea ETF Market Value Tops 500 Trillion Won for First Time as Retail Money Floods In

Samsung Electronics, SK Hynix Help Lift ETF Market Above 500 Trillion Won After 24 Years

100 Trillion Won Added in 42 Days

Average Daily Trading Value Reaches 28 Trillion Won This Month

The market capitalization of exchange-traded funds listed in South Korea has surpassed 500 trillion won for the first time. The milestone comes as AI-driven liquidity pours into equities after the Kospi rose above 8,000, with household money increasingly shifting from bank deposits and real estate into ETFs.

According to the Korea Exchange, the combined market capitalization of 1,132 domestically listed ETFs stood at 506.114 trillion won as of 11 a.m. on May 27. It is the first time the local ETF market has crossed 500 trillion won since ETFs first debuted on the Kospi in October 2002.

The ETF market topped 100 trillion won in June 2023, then reached 200 trillion won in June 2025, two years later. It surpassed 300 trillion won on Jan. 5, 2026, and crossed 400 trillion won on April 15, 2026. Another 100 trillion won was added in just 42 days, underscoring the market's rapid growth.

From 297.2703 trillion won at the end of 2025, the market has expanded by more than 200 trillion won in about five months. ETF market capitalization also moved above 400 trillion won on April 15, when the Kospi reclaimed 6,000. On May 27, it crossed 500 trillion won as the Kospi rose past 8,000 and traded around 8,400.

The launch of 16 leveraged ETFs tied to single stocks, Samsung Electronics and SK Hynix, also helped push the market above the 500 trillion won mark on May 27. At the same time, KODEX SK Hynix Single Stock Leverage and KODEX Samsung Electronics Single Stock Leverage had market capitalizations of 1.9243 trillion won and 1.3003 trillion won, respectively. The combined market value of the 16 products reached 5.1622 trillion won.

The ETF market's rapid growth is also increasing its influence on the broader stock market. Heavy inflows into ETFs are supporting index gains, while rising indexes in turn boost ETF values, reinforcing a virtuous cycle. Average daily trading value in the ETF market reached a record 28.3031 trillion won this month through May 26. That was equivalent to about 60% of the Kospi's average daily trading value.

Brokerages say the market could continue to expand as money moves into ETFs at a faster pace, opening the door to an ETF market worth 600 trillion won. ETFs still account for only 8% of the Kospi's total market capitalization, compared with 20% in the US and 9% in Japan, suggesting further room for growth.

The debut of single-stock leveraged ETFs could draw in even more money. Eight asset managers, including Samsung Asset Management and Mirae Asset Global Investments, launched leverage and inverse 2X products on May 27 tied to Samsung Electronics and SK Hynix that track twice each stock's daily gain or loss.

"South Korean households have begun shifting their asset allocation away from deposits and real estate toward financial assets centered on ETFs and pensions," Kim Jin-young, an analyst at Kiwoom Securities, said. ETFs are at the center of that shift.

Kang Kyung-joo, Hankyung.com reporter qurasoha@hankyung.com