ETF Market Poised to Reach 400 Trillion Won in Q1, with Record 50 Trillion Won Jump in January

[Financial News] The domestic Exchange-Traded Fund (ETF) market expanded by more than 50 trillion won in just one month. This is the largest monthly increase on record. Having surpassed 300 trillion won less than a month ago, the market is growing so rapidly that some now expect it to break the 400 trillion won mark as early as the first quarter of this year.
According to the Korea Exchange (KRX) on the 3rd, the total net assets of ETFs stood at 348.4574 trillion won as of January 30. This is an increase of 51.3173 trillion won, or 17.27%, compared with 297.1401 trillion won at the end of last year. Net assets are calculated by subtracting liabilities and issuance costs from total assets, and they rise when new investment capital flows in and the underlying securities gain in value.
This is the first time that net assets have grown by 50 trillion won in a single month. The figure is about twice the 26.5226 trillion won increase recorded in October last year, which had been the strongest month of growth. The average monthly increase in 2023 was 10.2980 trillion won.
The domestic ETF market was launched in October 2002 and surpassed 100 trillion won in net assets on June 23, 2023, roughly 21 years later. It then broke through 200 trillion won on June 4 last year and climbed above 300 trillion won on January 5 this year, just about seven months later, underscoring its rapid ascent.
ETF net assets increased by only 6.38% in 2022. However, they grew 53.41% in 2023, 42.83% in 2024, and 72.86% in 2025. At the current pace, this year’s growth rate is expected to surpass last year’s as well.
The number of listed products is also rising sharply. The number of ETF listings increased from 539 at the end of January 2022 to 1,068 now, effectively doubling in size. Compared with 941 products at the end of January last year, the count is up by 127.
Since last year, a strong rally in the domestic stock market has fueled both capital inflows and higher returns, which in turn have expanded ETF net assets. In January alone, the Korea Composite Stock Price Index (KOSPI) surged 23.97%, while the KOSDAQ Index jumped 24.20%. For all of last year, the KOSPI and KOSDAQ Index rose 75.63% and 36.36%, respectively.
ETFs tend to be less volatile than individual stocks and offer the benefit of diversification. A source in the financial investment industry said, "As the stock market continues to boom, more investors are entering the market, even if belatedly," adding, "Those who feel burdened by picking single stocks are actively turning to indirect investments such as ETFs."
The same source continued, "Compared with the past, there are now far more options, so investors can choose the sectors they want," and added, "Asset managers are competing by rolling out a wide range of products, so it is only a matter of time before total ETF net assets surpass 400 trillion won."
jisseo@fnnews.com Seo Min-ji Reporter