KOSPI Up 35% and KOSDAQ Up 19% This Year
The Right Time to Revitalize Public Offering Funds Overlooked by ETFs
The domestic stock market, which had underperformed compared to major global markets for several years, has been rising rapidly this year. Asset management companies, which until just half a year ago were focused solely on ETF marketing, have now begun actively promoting promising public offering funds. Funds suitable for middle-aged investors who are not familiar with ETF investing, as well as those expecting a long-term rise in the domestic stock market, are drawing attention.
According to the financial investment industry on August 1, 2025, the KOSPI and KOSDAQ indices have risen by 35.3% and 18.7%, respectively, since the beginning of this year.
There is growing support for the outlook that the domestic stock market will continue to trend upward. Noah Rim, head of the ETF business division at KB Asset Management, advised, "There is a high possibility that the domestic stock market will move upward," and added, "Rather than focusing on specific stocks or themes, it is advisable to invest in market index products that can stably follow the overall upward trend of the market."
Domestic asset management companies, judging that this is the right time to revitalize the public offering fund market, have recently been actively recommending public offering funds that match the current stock market trends. Jeon Yongwoo, head of the pension OCIO division at Samsung Asset Management, said, "We are recommending funds that reflect various factors such as policy momentum, changes in industrial structure, and interest rate cycles, which can provide practical help in building long-term assets."
Samsung Asset Management recommended the 'Samsung Retirement Pension Passive Dividend Stability 40' fund as a product in line with the new government's stock market activation policies. This fund invests in large-cap blue-chip stocks with high dividend growth rates. It also diversifies into domestic bonds to reduce volatility.
Korea Investment Management recommended the following funds, which are expected to benefit from shareholder return policies: ▲Korea Investment Small and Mid Cap Value Fund ▲Korea Investment Governance Shareholder Return Fund. The Korea Investment Governance Shareholder Return Fund, launched in June 2024, selects and invests in stocks based on the potential for governance improvement, dividend expansion, and share buybacks, as well as the execution of shareholder return policies. As the premium related to corporate governance has recently attracted attention in the stock market, inquiries from investors are increasing. This fund has recorded a return of nearly 40% so far this year.
Launched in 2007, the Korea Investment Small and Mid Cap Value Fund invests in undervalued small and mid-cap stocks with strong intrinsic value. It selects companies for investment through a comprehensive analysis of financial soundness and price attractiveness.
Kim Sumin, head of the ESG management division at Korea Investment Management, explained, "The new government is introducing policies for minority shareholders, such as separate taxation of dividend income and amendments to the Commercial Act, and is demanding shareholder returns from companies," and added, "It is important to adopt an investment strategy that identifies companies with actual capacity for returns, rather than simply those with low price-to-book ratios (PBR)."
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