Responding to South Korean investors’ growing interest in the direct trading of foreign securities, the nation‘s bourse operator Korea Exchange has listed a wide range of popular overseas exchange-traded funds as well as exchange-traded notes, according to the KRX on June 23.
As of May this year, a total of 257 overseas exchange-traded funds and exchange-traded notes are listed on the KRX, officials said.
Local investors trading ETFs and ETNs listed on the KRX are not subject to securities transaction tax. They also don’t need to exchange money to buy the products, while not having to pay high commission fees, they added.
“The size of KRX-listed overseas ETF and ETN markets has been growing due to low costs and real-time investment,” an official at the KRX said.
“The KRX’s ETF-related webpage on Naver Post provides useful and detailed information, so please use it for investment.”
An ETF refers to an investment fund traded on stock exchanges and represents a basket of stocks that reflects an index, which provides retail investors and institutions with a more liquid and risk-hedging tool. An ETN is an unsecured debt note issued by a financial institution.
By Choi Jae-hee (firstname.lastname@example.org)