How to invest in South Korea using ETFs
How do I invest in South Korean stocks?
The easiest way to invest in the whole South Korean stock market is to invest in a broad market index. This can be done at low cost by using ETFs.
On the South Korean stock market you'll find 3 indices which are tracked by ETFs.
Alternatively, you can invest in indices on the Asia-Pacific region and Emerging Markets.
Performance of South Korean stocks (MSCI Korea 20/35)
1 month: 2.99%
1 year: -9.23%
3 years: -12.83%
5 years: 2.54%
Indices in comparison
The best indices for ETFs on South Korea
For an investment in the South Korean stock market, there are 3 indices available which are tracked by 6 ETFs. On the FTSE Korea 30/18 Capped index there is 1 ETF. On the MSCI Korea 20/35 index there are 4 ETFs. On the MSCI Korea 20/35 Custom index there is 1 ETF. The total expense ratio (TER) of ETFs on these indices is between 0.09% p.a. and 0.74% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
FTSE Korea 30/18 Capped | South Korea | 1 ETF | 161 (31/03/2022) | The FTSE Korea 30/18 Capped index tracks the largest stocks from South Korea. The largest company in the index is limited to a maximum of 30 percent of the index capitalization, all other index components to a maximum of 18 percent. Index factsheet |
MSCI Korea 20/35 | South Korea | 4 ETFs | 111 (30/11/2022) | The MSCI Korea 20/35 index tracks large and mid cap Korean stocks. The weight of the largest constituent is constrained to 35% and the weights of all other constituents are constrained to a maximum of 20%. Index factsheet |
MSCI Korea 20/35 Custom | South Korea | 1 ETF | 111 (30/11/2022) | The MSCI Korea 20/35 Custom index tracks large and mid cap Korean stocks. The weight of the largest constituent is constrained to 35% and the weights of all other constituents are constrained to a maximum of 20%. A buffer of 10% is applied on these limits at each index rebalancing. Index factsheet |
| ETF ISIN | Fund size in m GBP | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Franklin FTSE Korea UCITS ETFIE00BHZRR030 | 596 | 0.09% p.a. | Accumulating | Ireland | Full replication | |
| iShares MSCI Korea UCITS ETF (Dist)IE00B0M63391 | 186 | 0.74% p.a. | Distributing | Ireland | Full replication | |
| iShares MSCI Korea UCITS ETF (Acc)IE00B5W4TY14 | 125 | 0.65% p.a. | Accumulating | Ireland | Full replication | |
| Amundi MSCI Korea UCITS ETF AccLU1900066975 | 112 | 0.45% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers MSCI Korea UCITS ETF 1CLU0292100046 | 30 | 0.45% p.a. | Accumulating | Luxembourg | Full replication | |
| HSBC MSCI Korea Capped UCITS ETF USDIE00B3Z0X395 | 27 | 0.50% p.a. | Distributing | Ireland | Full replication |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| MSCI Korea 20/35 | 7.06% | -2.99% | -15.20% | -7.14% | -16.17% | |
| MSCI Korea 20/35 Custom | 7.09% | -3.00% | -15.24% | -7.14% | -14.82% | |
| FTSE Korea 30/18 Capped | 6.98% | -2.77% | -14.81% | -6.66% | -12.75% |
| Index | 2025 in % | 2024 in % | 2023 in % | 2022 in % | 2021 in % | |
|---|---|---|---|---|---|---|
| FTSE Korea 30/18 Capped | 7.78% | -20.95% | 16.48% | -20.08% | -5.59% | |
| MSCI Korea 20/35 | 8.00% | -21.26% | 13.27% | -19.82% | -7.42% | |
| MSCI Korea 20/35 Custom | 8.50% | -21.87% | 15.46% | -20.31% | -7.32% |
Source: justETF.com; As of 31/01/2025; Calculations in GBP based on the largest ETF of the respective index.
The best South Korea ETFs
by 1 year return
| 1 | Franklin FTSE Korea UCITS ETF | -6.66% |
| 2 | Amundi MSCI Korea UCITS ETF Acc | -6.75% |
| 3 | iShares MSCI Korea UCITS ETF (Acc) | -7.01% |
The cheapest South Korea ETFs
by total expense ratio (TER)
| 1 | Franklin FTSE Korea UCITS ETF | 0.09% p.a. |
| 2 | Amundi MSCI Korea UCITS ETF Acc | 0.45% p.a. |
| 3 | Xtrackers MSCI Korea UCITS ETF 1C | 0.45% p.a. |
Alternative investment opportunities
Asia-Pacific indices with a large share of South Korea
Besides South Korea ETFs, you may consider ETFs on the Asia-Pacific region. In total, you can invest in 5 Asia-Pacific indices, which are tracked by 11 ETFs. The total expense ratio (TER) of ETFs on Asia-Pacific is between 0.15% p.a. and 0.74% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| FTSE Developed Asia Pacific ex Japan | Asia Pacific South Korea: 28.19% (30/11/2022) | 2 ETFs | 399 (31/08/2023) | The FTSE Developed Asia Pacific ex Japan index tracks large and mid cap stocks from developed countries in the Asia Pacific region excluding Japan. Index factsheet |
| MSCI AC Asia Pacific ex Japan | Asia Pacific South Korea: 11.25% (30/11/2022) | 1 ETF | 1,113 (29/11/2024) | The MSCI AC Asia Pacific ex Japan index tracks equity markets of the emerging and developed countries of the Asia and Pacific region, excluding Japan. Index factsheet |
| MSCI AC Asia ex Japan | Asia Pacific South Korea: 13.61% (30/11/2022) | 2 ETFs | 1,054 (29/11/2024) | The MSCI AC Asia ex Japan index tracks equity markets of the emerging and developed countries of the Asia region, excluding Japan. Index factsheet |
| MSCI AC Far East ex Japan | Asia Pacific South Korea: 16.39% (30/11/2022) | 3 ETFs | 898 (29/11/2024) | The MSCI AC Far East ex Japan index tracks equity markets of the emerging and developed countries of the East Asian region, excluding Japan. Index factsheet |
| MSCI Emerging Markets Asia | Asia Pacific South Korea: 15.31% (30/11/2022) | 3 ETFs | 1,010 (29/11/2024) | The MSCI Emerging Markets Asia index tracks large and mid cap companies from Asian emerging markets. Index factsheet |
| ETF ISIN | Fund size in m GBP | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI EM Asia UCITS ETF (Acc)IE00B5L8K969 | 2,512 | 0.20% p.a. | Accumulating | Ireland | Full replication | |
| Vanguard FTSE Developed Asia Pacific ex Japan UCITS ETF DistributingIE00B9F5YL18 | 891 | 0.15% p.a. | Distributing | Ireland | Full replication | |
| SPDR MSCI EM Asia UCITS ETFIE00B466KX20 | 728 | 0.55% p.a. | Accumulating | Ireland | Full replication | |
| iShares MSCI AC Far East ex-Japan UCITS ETFIE00B0M63730 | 627 | 0.74% p.a. | Distributing | Ireland | Full replication | |
| Amundi MSCI Emerging Markets Asia UCITS ETF USDLU1681044563 | 495 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Amundi MSCI AC Asia Pacific Ex Japan UCITS ETF AccLU1900068328 | 380 | 0.60% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Vanguard FTSE Developed Asia Pacific ex Japan UCITS ETF (USD) AccumulatingIE00BK5BQZ41 | 293 | 0.15% p.a. | Accumulating | Ireland | Full replication | |
| UBS ETF (IE) MSCI AC Asia Ex Japan SF UCITS ETF (USD) A-accIE00B7WK2W23 | 224 | 0.23% p.a. | Accumulating | Ireland | Swap-based | |
| Amundi MSCI AC Asia Ex Japan UCITS ETF AccLU1900068161 | 188 | 0.50% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| HSBC MSCI AC Far East ex Japan UCITS ETF USDIE00BBQ2W338 | 104 | 0.45% p.a. | Accumulating | Ireland | Full replication | |
| HSBC MSCI AC Far East ex Japan UCITS ETF USD (Dist)IE00022VXYM7 | 10 | 0.45% p.a. | Distributing | Ireland | Full replication |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| FTSE Developed Asia Pacific ex Japan | 4.83% | 2.08% | 0.06% | 6.07% | 10.37% | |
| MSCI AC Asia Pacific ex Japan | 1.79% | 2.04% | 5.79% | 19.40% | 9.68% | |
| MSCI Emerging Markets Asia | 1.54% | 1.63% | 5.23% | 21.48% | 6.84% | |
| MSCI AC Asia ex Japan | 1.53% | 1.97% | 6.19% | 21.63% | 6.46% | |
| MSCI AC Far East ex Japan | 2.72% | 3.11% | 10.58% | 25.36% | 1.40% |
| Index | 2025 in % | 2024 in % | 2023 in % | 2022 in % | 2021 in % | |
|---|---|---|---|---|---|---|
| MSCI AC Asia Pacific ex Japan | 1.53% | 11.54% | 0.89% | -7.77% | -3.00% | |
| MSCI AC Asia ex Japan | 2.13% | 13.52% | 0.06% | -10.16% | -3.78% | |
| MSCI Emerging Markets Asia | 3.34% | 13.63% | 1.75% | -10.37% | -5.16% | |
| MSCI AC Far East ex Japan | 3.35% | 13.27% | -3.25% | -11.22% | -9.10% | |
| FTSE Developed Asia Pacific ex Japan | 4.66% | -4.28% | 5.04% | -2.11% | 2.30% |
Source: justETF.com; As of 31/01/2025; Calculations in GBP based on the largest ETF of the respective index.
Emerging markets indices with a large share of South Korea
Besides South Korea ETFs you may consider emerging markets ETFs. In total, you can invest in 1 emerging markets index, which is tracked by 18 ETFs. The total expense ratio (TER) of ETFs on emerging markets is between 0.14% p.a. and 0.55% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| MSCI Emerging Markets | Emerging Markets South Korea: 11.95% (30/11/2022) | 18 ETFs | 1,253 (29/11/2024) | The MSCI Emerging Markets index tracks stocks from emerging markets worldwide. Index factsheet |
| ETF ISIN | Fund size in m GBP | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Xtrackers MSCI Emerging Markets UCITS ETF 1CIE00BTJRMP35 | 4,762 | 0.18% p.a. | Accumulating | Ireland | Optimized sampling | |
| iShares MSCI EM UCITS ETF (Dist)IE00B0M63177 | 3,905 | 0.18% p.a. | Distributing | Ireland | Full replication | |
| iShares MSCI EM UCITS ETF (Acc)IE00B4L5YC18 | 2,981 | 0.18% p.a. | Accumulating | Ireland | Full replication | |
| Amundi Index MSCI Emerging Markets UCITS ETF DR (C)LU1437017350 | 2,588 | 0.18% p.a. | Accumulating | Luxembourg | Full replication | |
| Amundi MSCI Emerging Markets II UCITS ETF DistLU2573966905 | 1,733 | 0.14% p.a. | Distributing | Luxembourg | Unfunded swap | |
| HSBC MSCI Emerging Markets UCITS ETF USDIE00B5SSQT16 | 1,731 | 0.15% p.a. | Distributing | Ireland | Full replication | |
| Amundi MSCI Emerging Markets II UCITS ETF AccLU2573967036 | 1,518 | 0.14% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| UBS ETF (LU) MSCI Emerging Markets UCITS ETF (USD) A-disLU0480132876 | 1,168 | 0.18% p.a. | Distributing | Luxembourg | Optimized sampling | |
| Amundi MSCI Emerging Markets UCITS ETF USDLU1681045453 | 741 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| SPDR MSCI Emerging Markets UCITS ETFIE00B469F816 | 576 | 0.18% p.a. | Accumulating | Ireland | Full replication | |
| Amundi Index MSCI Emerging Markets UCITS ETF DR (D)LU1737652583 | 497 | 0.18% p.a. | Distributing | Luxembourg | Full replication | |
| Xtrackers MSCI Emerging Markets Swap UCITS ETF 1CLU0292107645 | 490 | 0.49% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Invesco MSCI Emerging Markets UCITS ETFIE00B3DWVS88 | 326 | 0.19% p.a. | Accumulating | Ireland | Unfunded swap | |
| HSBC MSCI Emerging Markets UCITS ETF USD (Acc)IE000KCS7J59 | 316 | 0.15% p.a. | Accumulating | Ireland | Full replication | |
| Xtrackers MSCI Emerging Markets UCITS ETF 1DIE000GWA2J58 | 175 | 0.18% p.a. | Distributing | Ireland | Full replication | |
| Amundi Index MSCI Emerging Markets UCITS ETF DR - USD (D)LU2277591868 | 130 | 0.18% p.a. | Distributing | Luxembourg | Full replication | |
| Amundi MSCI Emerging Markets III UCITS ETF USD AccFR0010435297 | 89 | 0.55% p.a. | Accumulating | France | Unfunded swap | |
| Xtrackers MSCI Emerging Markets Swap UCITS ETF 1DLU2675291913 | 78 | 0.18% p.a. | Distributing | Luxembourg | Unfunded swap |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| MSCI Emerging Markets | 1.86% | 1.66% | 4.07% | 16.34% | 4.50% |
| Index | 2025 in % | 2024 in % | 2023 in % | 2022 in % | 2021 in % | |
|---|---|---|---|---|---|---|
| MSCI Emerging Markets | 2.72% | 9.13% | 3.61% | -10.57% | -1.50% |
Source: justETF.com; As of 31/01/2025; Calculations in GBP based on the largest ETF of the respective index.