ETF net assets surpass 300 trillion KRW… Retail investor assets surge towards KOSPI high rebound trend

South Korea’s KOSPI( Composite Stock Price Index first broke through the 4,500-point mark, while the net asset size of domestically listed index funds) ETF( market has surpassed 300 trillion KRW for the first time. This is interpreted as a result of the stock market’s strength attracting investor inflows and the diversification of ETF products.

According to the Korea Financial Investment Association, as of January 5, 2026, the total net assets of domestic ETFs stood at 303.5794 trillion KRW. Considering that on the previous day, January 4, the net assets were 298.2461 trillion KRW, this indicates an increase of over 5 trillion KRW in just one day. The direct background is that the KOSPI index closed the 6th session with a rise of 67.96 points from the previous trading day, reaching 4,525.48 points, setting a new record high.

ETFs are fully passive management products that track specific stock price indices without a dedicated fund manager actively adjusting the investment portfolio. Due to their stock-like ease of trading and relatively low fees, they have been highly popular among individual investors. Especially after the COVID-19 pandemic, the surge of retail investors pursuing personal investment strategies has made ETFs quickly become a popular financial tool.

The ETF market began in October 2002 with the launch of four products tracking the “KOSPI200” index. At that time, the total net assets were only 355.2 billion KRW, but after 21 years, in June 2023, it first surpassed 100 trillion KRW. Two years later, in June last year, it exceeded 200 trillion KRW, and now, after just seven months, it has broken through 300 trillion KRW, showing rapid growth momentum.

Recent growth in the ETF market and product diversification have also had a significant impact. In addition to the original products tracking domestic indices, many new products based on U.S. large-cap technology stocks, artificial intelligence)AI( semiconductor companies, short-term bonds, and high-dividend stocks have been launched. Particularly last year, covered call)covered call( ETFs that pursue income even in declining markets using options strategies have attracted attention due to their high yields.

This trend indicates that if the domestic stock market continues to show stable upward movement in the future, it is likely to not only drive the overall scale of the ETF market but also promote more refined investment strategies. It is expected that individual investors considering ETFs as an asset management tool will increase, further intensifying product competition.