'Record' 600 Billion Won Withdrawn in a Single Day from Korean ETFs Listed in the U.S.: Quiet Selling Amid the Rally

Nearly 600 billion won was withdrawn in a single day from Korean Exchange-Traded Funds (ETFs) listed on the U.S. stock market. This comes as the KOSPI has surged more than 75% this year, fueled by optimism over expanded investments in artificial intelligence (AI), prompting some investors to realize profits.

As doubts arose about the conclusion of ceasefire negotiations in the Middle East war, the three major U.S. stock indexes all fell, and the domestic stock market also started lower on the 8th. At the dealing room of Hana Bank's headquarters in Jung-gu, Seoul, employees are monitoring the stock market and exchange rates. On that day, the KOSPI started trading at 7,353.94, down 1.82% from the previous trading day. May 8, 2026. Photo by Jo Yongjun

According to Bloomberg News on May 7 (local time), 409 million dollars (approximately 600 billion won) flowed out of the 'iShares MSCI South Korea' ETF (ticker: EWY), managed by BlackRock, the world's largest asset manager, on May 6. This marks the largest outflow in the ETF's history. The fund also saw net outflows for five consecutive trading days through the previous day, with withdrawals during that period exceeding 900 million dollars (about 1.3 trillion won).

Analysts attribute these withdrawals to profit-taking by some investors after the recent rally became excessive. The KOSPI has risen more than 75% this year, led by strong gains in semiconductor stocks such as Samsung Electronics and SK hynix, driven by AI-related expectations. As of the previous day, Samsung Electronics had climbed 126% and SK hynix 154% year-to-date. When more than 400 million dollars exited this ETF, the KOSPI rose 6.45%, surpassing the 7,000 mark for the first time in history.

Todd Sohn, Chief ETF Strategist at Strategas Securities, stated, "The upward momentum in Korean stocks is very strong. While no one can predict when this trend will end, it is rational for investors to trim some exposure at such extreme levels." Ihor Dusaniwsky, Head of Predictive Analytics at S3 Partners, explained that short sellers have increased their bearish positions against Korean stocks and that some investors view a correction as inevitable after the sharp rally.

The iShares MSCI South Korea ETF was listed in the U.S. in May 2000. Its portfolio includes Samsung Electronics, SK hynix, SK Square, Hyundai Motor Company, and KB Financial Group.

This content was produced with the assistance of AI translation services.