Exchange "Simplifying Review to Launch Various ETF Products"

'Asset Management CEOs Meeting for Sustainable Growth of the ETF Market' Held

On the 20th at 3 PM, the Korea Exchange held the "Asset Management Company CEO Meeting for the Sustainable Growth of the ETF Market" in the main conference room of its Seoul headquarters. Before the meeting, Lim Jae-jun, Head of the Korea Exchange's KOSPI Market Division (fourth from the left in the front row), and the CEOs of asset management companies shouted "Fighting" and took a commemorative photo.

[Asia Economy Reporter Song Hwajeong] The Korea Exchange (KRX) has decided to simplify the review process and ease listing restrictions to expand the base of investors in Exchange-Traded Funds (ETFs).

On the 20th, the Exchange held a 'CEO Roundtable for Asset Management Companies for the Sustainable Growth of the ETF Market.' Thirteen CEOs from asset management companies issuing ETFs attended the meeting to share key issues in the ETF market and exchange various opinions for market development.

At the meeting, the Exchange announced plans to shorten the listing review period by simplifying the review of standardized products and improving the pre-consultation process to ensure that various ETF products tailored to market investment demand can be launched in a timely manner. It will also reduce batch reviews for similar items to facilitate smooth listing procedures. Additionally, for ETFs containing highly volatile assets such as commodities, since investor protection and stabilization measures have been established, the Exchange plans to ease listing restrictions to absorb overseas direct purchase demand.

Furthermore, to promote the excellence of ETF products as a long-term asset management tool in the ultra-low interest rate era, the Exchange explained that it plans to implement various marketing strategies, including producing targeted online advertisements and hosting global conferences combining online and offline formats.

Im Jaejun, Head of the KRX Stock Market Division, stated, "The domestic ETF market size has grown significantly from 25.1 trillion KRW in 2016 to 59.9 trillion KRW as of the 18th, with net asset value approaching 60 trillion KRW," adding, "In line with the recent increase in direct investment in the capital market and the trend of strengthening investor protection, we ask the industry to work together to broaden the investment base and sustain growth in the ETF market."

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