Samsung Asset Management captured 62% market share and 83% of operating revenue in South Korea's single-stock leveraged ETF market during the approximately two-month period following the May 27 product launch, according to data compiled through August 3. Mirae Asset, which held 32% market share, generated only 13% of total operating revenue—one-sixth of Samsung's 3.225 billion won—despite charging annual fees of 0.0741% compared to Samsung's 0.269%. The disparity emerged as South Korean regulators implemented supplementary measures for single-stock leveraged exchange-traded funds on July 31, with six other asset management firms earning under 100 million won each in operating revenue during the period.
Samsung Asset Management Captures 83% of Operating Revenue
Samsung Asset Management's two single-stock leveraged ETFs—KODEX Samsung Electronics and KODEX SK Hynix—generated 3.225 billion won in operating revenue, representing 82.6% of the total market. The company's market share stood at 62.1% as of July 31, up from 59.2% at the end of May. Operating revenue was calculated by applying daily management fee rates (annual management fee ÷ 365 days) to each ETF's net asset value, the standard method used by the asset management industry. This fee represents the portion asset managers receive after excluding sales, administrative, and custody fees from total investor-borne expenses.
Market Share Concentration Between Two Firms
Mirae Asset held 31.7% market share as of July 31, effectively unchanged from 32.0% at the end of May. The firm's operating revenue totaled 511 million won (13.1% of market total) from its TIGER Samsung Electronics and TIGER SK Hynix single-stock leveraged ETFs. The revenue gap between the two largest players exceeded their market share differential, with Samsung earning six times Mirae Asset's revenue despite holding roughly twice the market share. A financial investment industry official stated that Samsung Asset Management achieved a "landslide victory" in the single-stock leveraged ETF market.
Fee Structure Creates Revenue Gap
The revenue disparity stemmed from Samsung Asset Management's higher fee structure. Samsung's products charged annual management fees of 0.269%, while Mirae Asset's comparable products charged 0.0741%—less than one-third of Samsung's rate. At the time of product launch, Mirae Asset's price competitiveness attracted attention, but this advantage did not translate into proportional investor inflows. Samsung maintained and expanded its market position despite the fee differential, with its market share increasing by 2.9 percentage points between May and July 31.
Six Asset Managers Record Minimal Returns
The six firms excluding Samsung and Mirae Asset—Shinhan, Korea Investment, KB, Hana, Hanwha, and Kiwoom—each earned less than 100 million won in operating revenue during the period. Hanwha Asset Management ranked third with 60.67 million won from its Samsung Electronics inverse (2X) product, followed by Shinhan Asset Management with 38.49 million won from its SK Hynix inverse (2X) product. Korea Investment (27.29 million won), KB Asset Management (21.44 million won), Kiwoom Investment Asset Management (13.75 million won), and Hana Asset Management (7.62 million won) followed. As of July 31, Shinhan held 2.4% market share and Hanwha held 0.4%. A financial investment industry official noted that "operating revenue is a sales concept" and that "many cases are effectively in the red when excluding listing fees, product development costs, and personnel expenses."
FAQ
What market share did Samsung Asset Management capture in South Korea's single-stock leveraged ETF market?
Samsung Asset Management held 62.1% market share as of July 31, up from 59.2% at the end of May. The company's two products—KODEX Samsung Electronics and KODEX SK Hynix single-stock leveraged ETFs—generated 3.225 billion won in operating revenue, representing 82.6% of the total market during the May 27 to August 3 period.
How did Mirae Asset's fee structure compare to Samsung Asset Management's in the single-stock leveraged ETF market?
Mirae Asset charged annual management fees of 0.0741% for its TIGER Samsung Electronics and TIGER SK Hynix single-stock leveraged ETFs, less than one-third of Samsung Asset Management's 0.269% annual rate. Despite this price advantage, Mirae Asset held 31.7% market share and generated only 511 million won (13.1% of total operating revenue)—one-sixth of Samsung's 3.225 billion won.
When did South Korean regulators implement supplementary measures for single-stock leveraged ETFs?
Regulators implemented supplementary measures for single-stock leveraged ETFs on July 31. The products initially launched on May 27, with the regulatory measures taking effect approximately two months later during the market's consolidation phase.
