Samsung Management launches Korea’s first ‘K-Robot ETF’
It’ll probably come out sometime this month
An exchange-traded fund (ETF) that invests in Korean robot-related stocks is coming out for the first time. The robot market is attracting attention as it has emerged as a new arena for large companies including Samsung, and government support is also added. Among these, the market is expected to expand further as funds that invest in related industries emerge.
According to Hankyung.com coverage on the 7th, Samsung Asset Management’s ‘K-Robot Theme ETF’ (tentative name) is being reviewed by the Korea Exchange. As the name suggests, it is a product that invests in domestic robot-related stocks. So far, there have been no ETFs in the Korean stock market that feature domestic robot stocks. The listing is expected to be in September at the earliest or early October at the latest.
The major constituents of ETFs are:
and , , , T, , , , , , , etc. These stocks account for about 90% of the stock. In addition, small and mid-cap stocks such as , , , , , , , are expected to account for around 1%.
With the launch of this product, Samsung Asset Management is expected to have a lineup of domestic and foreign robot ETFs. In 2017, Samsung Asset Management also launched ‘Global 4th Industrial Robotics’, an ETF that invests in global robot companies. At the time, it was the first quaternary industry-related ETF in Korea.
Inside and outside the market, Samsung is also taking the lead in creating a financial ecosystem that is expanding the robot market. This is because investment in the robot business in Korea has been focused on large corporations. Small and mid-cap stocks listed in Korea showed a theme whenever news of a large company was announced, but there was hardly any fund investment with stable cash flow.
In fact, when Samsung Electronics announced in March that it would actively foster robots as a new growth business, related stocks soared. on the day of the announcement
During this time, it soared to the upper limit at one point, and other related stocks such as RoboRobo also showed strong Japanese imperialism. The stock price has fluctuated several times over the past month. As news of Samsung Electronics’ introduction of unmanned factories by 2030 and the establishment of Hyundai Motor Group’s ‘Robot Artificial Intelligence (AI) Research Center’ in the US, spread, it was reported.
Although the stock prices of listed companies are fluctuating like theme stocks, the outlook for the industry is full of growth. According to the Korea Robot Industry Promotion Agency, the size of the domestic robot industry market in 2020 was 5.5 trillion won. Although it grew only 2.6% compared to 2019, it grew at an average annual rate of 7.8% for 7 years from 2013. Kim Doo-hyeon, a researcher at Hana Securities, said, “Unlike machines that focused on efficiency, robots are different in that they combine both intelligence and efficiency and are effective in replacing human resources. It will turn to the right as an enemy.”
As it is a new growth industry, it is also expected to benefit from government policies. The 110 national tasks announced by the Presidential Takeover Committee in May included ‘connecting demand for digital realization industries such as robots and semiconductors and strengthening R&D’.
On the other hand, there are many financial products invested in the overseas robot industry. There are several robot ETFs listed. Mirae Asset Global X’s ‘BOTZ’ has a market capitalization of 1.859 trillion won. The market cap of ‘ROBO’ released by Robo Global is currently 1.67 trillion won.
Shin Min-kyung, reporter at Hankyung.com radio@hankyung.com