World's First Samsung Electronics, SK Hynix 2x ETF Launched in Hong Kong.. Why Are Foreign Investors So Enthusiastic? / Global Capital Flows into Korea | CSOP Asset Management Executive Director Lee Jae-chung

Summary

Lee Jae-chung, Executive Director of CSOP Asset Management, explains why foreign investors are pouring money into Korean equities through ETFs. He highlights the success of Hong Kong-listed 2x leveraged ETFs on Samsung Electronics and SK Hynix, the role of US-listed EWI in improving access, and the upcoming launch of new Korea-focused products. He also discusses Korea's potential MSCI upgrade, the justified concentration in semiconductor leaders, and views the probability of further rate hikes as very low.

• CSOP launched the world's first 2x leveraged single-stock ETFs on Samsung Electronics and SK Hynix in Hong Kong, attracting large foreign inflows.
• US-listed iShares MSCI South Korea ETF (EWI) is a key channel for global investors to access Korean equities, driving significant passive demand.
• Korea's potential reclassification from emerging to developed market in MSCI indices is a long-term positive, with watchlist inclusion motivating market infrastructure improvements.
• The heavy concentration of flows into Samsung Electronics and SK Hynix is justified by strong earnings and mirrors the US Magnificent Seven pattern.
• Hong Kong high-net-worth investors are highly interested in Korean stocks, and the opening of unified brokerage accounts in June is expected to accelerate individual inflows.
• Further Fed rate hikes are seen as unlikely because easing energy prices and geopolitical de-escalation should reduce inflation pressure.
• CSOP is preparing to launch another Korea-focused ETF, which will create an additional indirect investment channel for Hong Kong investors.