K-POP ETF Net Assets Exceed 120 Billion Won, Driving Surge in Individual Investors’ Interest

The ACE K-POP Focus exchange-traded fund (ETF), which focuses on investments in the K-POP industry, has seen its net asset value surpass 120 billion won. As of the 22nd, the net asset value was recorded at 121.5 billion won, marking more than a doubling of assets just three months after it crossed 50 billion won in early February. Individual investors’ interest in this fund is growing rapidly. According to the Korea Exchange, 20.2 billion won worth of net purchases by individual investors have flowed into the ACE K-POP Focus ETF since the beginning of the year. This growth trend is attributed to recent signals of a lifting of China’s content restrictions and rising expectations for strong performance in the K-POP industry. In particular, the K-POP industry is viewed as a “storm-free zone” amid tariff risks originating from the United States, drawing significant market attention. The fund’s performance metrics are also outstanding. Its return rate over the past six months stood at 37.73%, far exceeding the average return rate of 2.26% for 653 stock-type ETFs in the same period. The one-year return rate also remained strong at 51.83%. Nam Kyung-moon, head of equity research at Korea Investment Trusts & Securities, stated, “As demand for K-POP expands globally, there are positive developments such as planned Comebacks and performances by major intellectual property (IP) holders through the first half of next year.” He added that the ACE K-POP Focus ETF is the only ETF listed in South Korea that invests exclusively in companies related to the K-POP industry. Meanwhile, the desire among K-POP fans to enhance their concert experiences is creating new markets. A market where fans rent Samsung Galaxy phones to capture perfect photos of their idols is expanding swiftly, particularly in Southeast Asia. In South Korea, the phone rental market is particularly active due to K-POP concerts held throughout the year. Companies like SnapSuit offer premium phones equipped with 10x optical zoom lenses, such as the Samsung Galaxy S23 Ultra and S24 Ultra, at daily rental fees ranging from 30,000 to 50,000 won (approximately $22 to $37). These companies have expanded their operations from a scale of just a dozen units at inception to hundreds of units today.