Mirae Asset Global Investments announced on the 13th that it is introducing two TIGER ETFs focused on 'Travel·Leisure' and 'Cosmetics,' sectors expected to benefit from the temporary visa-free entry allowed for Chinese group tourists, and will be holding related promotional events.
On August 6, the government held a 'Tourism Revitalization Mini Policy Task Force' meeting and decided to temporarily allow visa-free entry for Chinese group tourists from September 29 until June 30 next year. As demand for travel from China, which had cooled due to the Hanhanryeong (China's restrictions on Korean Wave content), is showing signs of recovery, the number of Chinese tourists visiting Korea is expected to increase further with this visa-free measure.
With the expansion of inbound tourism demand, expectations are rising for domestic consumer sectors. In this context, Mirae Asset Global Investments has selected two ETFs as 'beneficiaries of the visa-free entry policy for Chinese group tourists.'
The first key beneficiary sector is travel·leisure. The 'TIGER Travel·Leisure ETF' is the only domestic ETF in the travel·leisure sector, including companies such as Paradise, Korean Air, and Hotel Shilla. Chinese tourists are not only active in duty-free shopping but also tend to spend on high value-added leisure activities such as hotels, theme parks, and casinos, which is expected to directly benefit the TIGER Travel·Leisure ETF.
Korean cosmetics, the top pick among Chinese tourists, are also expected to benefit. The TIGER Cosmetics ETF invests in leading K-beauty companies and also includes emerging indie brands such as Dalba Global and Genic. This allows for focused investment across the entire K-cosmetics industry. Popular content such as K-pop and K-dramas serve as motivation for travel to Korea, and a virtuous cycle is forming where tourists purchase cosmetics during their visits. The global expansion of K-cosmetics is expected to accelerate further.
Mirae Asset Global Investments is also holding a 'Summer Hot Event' to coincide with the summer vacation season. Until August 22, customers who meet the purchase requirements for the TIGER Travel·Leisure ETF or TIGER Cosmetics ETF will be eligible to win prizes through a lottery.
Lee Seungwon, Head of the Digital Platform Division at Mirae Asset Global Investments, stated, "The visa-free entry for Chinese group tourists is likely to serve as a positive catalyst not only for tourism revitalization but also for boosting domestic consumption and the share prices of related companies," adding, "Through TIGER ETFs, investors can actively invest in domestic consumer sectors expected to benefit from this policy."
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