Beginner’s Guide to Korean ETFs in 2025

South Korea's financial markets are entering a new chapter in 2025. With a new government administration focused on revitalizing capital markets, investors—both domestic and global—are turning their eyes to Korean ETFs.

🇰🇷 Government Push: Activating the Stock Market

Since the inauguration of the new administration, Korea has announced bold plans to boost the capital market, including:

• Reducing capital gains taxes on domestic stocks
• Promoting shareholder-friendly policies like increased dividends
• Supporting strategic industries: defense, nuclear energy, shipbuilding
• Enhancing ETF accessibility and listing more thematic ETFs

📈 Promising ETF Sectors in 2025

🛡️ 1. Defense Industry ETFs

In response to geopolitical tensions, Korea is investing heavily in defense. ETFs focusing on defense companies are gaining attention.

• KODEX Defense Industry
• TIGER Korea Defense

🛂 2. Shipbuilding & Marine ETFs

Shipbuilding is a traditional Korean powerhouse. With increasing global demand for LNG carriers and green shipping, this sector is expected to grow.

• KODEX Shipbuilding
• TIGER Korea Shipbuilding & Marine

⚛️ 3. Nuclear & Energy ETFs

The government is reigniting nuclear energy development for energy security and carbon neutrality.

• TIGER Nuclear Energy
• KODEX Green Energy

💰 4. High Dividend ETFs

Investor interest in stable income through dividends is surging, especially in a volatile market.

• KODEX High Dividend
• TIGER Dividend Plus
• ARIRANG Dividend Value

🌐 How Can Foreign Investors Access Korean ETFs?

International investors can access Korean ETFs via global brokers like Interactive Brokers (IBKR) or invest in Korean stocks through American Depositary Receipts (ADRs). However, for thematic exposure, Korean-listed ETFs offer more direct exposure.

📊 Final Tips for Beginners

• Use Korean platforms like Naver Finance to research ETF holdings
• Be aware of foreign exchange risk (KRW vs USD)
• Consider tax implications based on your residency

In 2025, South Korea’s ETF market presents a dynamic opportunity—especially in strategically supported sectors. For globally minded investors, it’s a time to watch Korea closely.

Disclaimer: This content is for informational purposes only and does not constitute investment advice.