(Seoul=Yonhap Infomax) Yong Bi Yang—Samsung Asset Management has launched an ETF tracking global K-culture value chain companies, targeting core firms within the K-pop, food, and beauty sectors.


Samsung Active Asset Management held a press conference on the 25th at TP Tower in Yeouido, Seoul, to mark the listing of the 'KoAct Global K-Culture Value Chain Active ETF'.


The company reviewed the growth of its proprietary ETF brand 'KoAct', which has reached approximately 1 trillion won ($845 million) in net assets in just over two years since its launch. Samsung Active Asset Management signaled plans to expand into global thematic investments as the next step.


The newly launched KoAct Global K-Culture Value Chain Active ETF invests in leading companies across the K-content, K-food, and K-beauty sectors, as well as global platform beneficiaries.


Key holdings include HYBE (South Korea's leading K-pop agency), Netflix, APR, Disney, Sony, Costco, Ulta Beauty, and Samyang Foods, targeting both domestic and international listed companies directly or indirectly linked to K-culture.


Costco acts as a bridgehead for the global expansion of Korean food products such as ramen and frozen foods, while Ulta Beauty, often called the "Olive Young of the US," is expanding its offerings of Korean beauty products.


The ETF was inspired by the popularity of Netflix's "K-Pop Demon Hunters" this year, according to Samsung Active Asset Management.


Kim Ji-woon, Head of Investment Division 2, stated, "While 'K-Pop Demon Hunters' was a hit, no Korean company profited directly from it. By allocating half of the portfolio to core K-culture companies and half to global platforms, we aim to deliver tangible returns."


The company emphasized that the KoAct Global K-Culture Value Chain Active ETF is designed to mitigate volatility compared to existing K-content-focused ETFs, which were often concentrated in specific sectors. By combining the overall K-culture industry with global platform growth drivers, the ETF seeks both reduced volatility and enhanced growth potential.


Kim highlighted the increasing appeal of K-pop due to diversified revenue streams, noting that income sources have expanded beyond concerts to include YouTube and merchandise sales.


"Although K-pop's profitability can be volatile, the diversification of revenue sources is a positive trend," Kim said. "With various groups building large fan bases, we expect significant opportunities to emerge from next year."


CEO Ha Ji-won discussed targets for the coming year, stating, "We currently offer 17 products, but there are still gaps in our matrix. We will address these to launch products that investors want."


Ha added, "Our current ETF market share is in the fractional digits, but our goal is to reach single-digit market share next year."


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ybyang@yna.co.kr


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