Asset management firms launch Japanese investment products

High-rise office buildings of Tokyo are seen in this undated file photo. Yonhap

By Lee Min-hyung

Korean asset management companies are moving to launch investment products that focus on the Japanese market in line with the country's roaring stock sentiment.

According to data from the Korea Securities Depository (KSD), local investors purchased 316.2 billion won ($247.7 million) worth of shares from Japan's stock market between the beginning of 2023 and July 21. The figure is forecast to break the record annual high for the 12 years since 2011 that the KSD has been compiling relevant data. In 2021, Korean investors' net-buying of Japanese shares came in at $333.85 million.

This was driven by the robust rally of Japan's Nikkei 225 index. The index set a new high of 33,000 in June for the first time in 33 years. The pace of its rise was noteworthy at a time when global monetary authorities still maintain tightening approaches.

Coupled with the weakening yen, Korea's asset management companies are also moving to launch investment products targeting the Japanese market. Hanwha Asset Management plans to launch an exchange-traded fund (ETF) that invests in major Japanese firms dealing with chip materials, components and equipment.

This will mark the first time that a Korean asset management company has launched an ETF focusing on certain industries of Japan.

Mirae Asset Global Investments is also considering releasing a Japan-themed ETF sometime in the near future.

“We have plans to launch an ETF that invests in Japan's promising industries but no specifics have been confirmed yet,” an official from the company said.