According to Capital Market Research Institute researcher Kim Jae-chil, on November 8, South Korea's thematic exchange-traded funds have surged to account for 33% of the passive stock ETF market as of June 2026, up from 5.1% in 2019. Net assets in this segment climbed from 1.8 trillion Korean won to 96 trillion won over the same period, with approximately 65% concentrated in semiconductor and artificial intelligence themes.

Kim warned that when large-scale capital flows into ETFs sharing identical themes, concentrated purchases could amplify price volatility in underlying holdings beyond what company fundamentals warrant, distorting market prices. He called for asset managers to differentiate products through varied selection strategies, weighting methods, and rebalancing rules, and for securities firms to enhance advisory services to help retail investors build diversified portfolios rather than chasing past performance.

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