Korea's Tech Titans Now in Reach as New ETF Ignites Hong Kong Fee War

HONG KONG – September 15, 2026 – The battle for investor capital in Hong Kong's exchange-traded fund (ETF) market intensified today as Mirae Asset Global Investments launched the Global X KOSPI 200 ETF (3408/9408 HK). The new fund provides access to South Korea’s top 200 companies, but its debut is significant for two reasons that extend far beyond a simple product listing: it fires a direct shot in a burgeoning fee war and offers investors a highly concentrated wager on the handful of companies powering the global artificial intelligence supply chain.

Listing on the Stock Exchange of Hong Kong, the fund tracks the KOSPI 200, a benchmark for the South Korean equity market. While the launch provides a new tool for investors, it also serves as a barometer for the strategic importance of South Korea's technology sector and the increasingly aggressive tactics asset managers are willing to employ to capture a slice of Asia's growing investment pool.

A New Front in Hong Kong's ETF Fee War

Mirae Asset is entering the market aggressively, leading with a sharp-edged pricing strategy. The Global X KOSPI 200 ETF carries an annual ongoing charge fixed at 0.49%, a figure the firm touts as the lowest among its Hong Kong peers. Research confirms this is not mere marketing hyperbole. The most direct competitor, the CSOP KOSPI 200 ETF, which launched just three months ago in June, has an annual management fee of 0.99% and estimated ongoing charges of 1.80%.

By offering a similar exposure for effectively half the price, Mirae Asset is making a clear strategic play to undercut the incumbent and attract cost-conscious investors. This move is characteristic of a broader global trend where fee compression has become a primary competitive weapon for ETF providers. The fund's single management fee structure, where the manager absorbs any costs above the 0.49% cap, provides cost certainty for investors and further pressures competitors to re-evaluate their own fee models.

This isn't Mirae Asset's first foray into fee-based competition in this specific market. A decade ago, its Horizons brand made a similar move by slashing the expense ratio on its then-existing Korean ETF. The re-emergence of this strategy under the Global X brand signals a deliberate and sustained effort to dominate this specific corridor of Asia-Pacific investing.

Riding the Korean Tech Wave: A High-Stakes Bet

The allure of the KOSPI 200 for global investors is its direct exposure to the engine room of the modern technology economy. South Korea's strategic position in semiconductors, AI infrastructure, advanced manufacturing, and batteries is unparalleled. Dennis Fok, Co-Chief Executive Officer at Mirae Asset in Hong Kong, noted, "The KOSPI 200 index offers diversified exposure to Korea's leading companies, including global technology leaders playing a pivotal role in the AI ecosystem."

However, the term "diversified" warrants scrutiny. The KOSPI 200 index is anything but. As of mid-2026, the Information Technology sector alone accounted for around two-thirds of the index's weight. More strikingly, the index is profoundly dominated by just two companies: Samsung Electronics and SK Hynix. Together, these semiconductor titans constitute nearly 60% of the index's value. Consequently, this new ETF is less a broad bet on the Korean economy and more a highly concentrated investment in the global semiconductor cycle.

For investors bullish on the long-term demand for memory chips and processing power driven by the AI boom, this concentration is a feature, not a bug. It offers a direct, liquid, and now low-cost vehicle to invest in the foundational suppliers of the digital age. But it also magnifies risk, tying the fund's fortunes to a single, notoriously cyclical industry and the competitive dynamics between two key players.

Investor Demand Meets Market Reality

The timing of the launch is impeccable, tapping into a torrent of investor interest in Korean equities. In the first half of 2026 alone, global exchange-traded products with exposure to the Korean market attracted nearly $30.5 billion, following a blockbuster $31.9 billion in 2025. This demand is underpinned by both the compelling AI narrative and attractive valuations. In June, the KOSPI 200's forward price-to-earnings ratio stood at a modest 9.02, a steep discount compared to the S&P 500's 22.39, suggesting room for significant valuation expansion.

However, investors must weigh this potential against a slate of considerable risks, which are explicitly detailed in the fund's prospectus. Beyond the immense concentration risk, the South Korean market is known for its high volatility, partly driven by high retail participation and sudden regulatory shifts. The KOSPI 200's annualized volatility surged past 60% earlier this year, a stark reminder of the market's potential for sharp swings.

Furthermore, currency risk is a significant factor. The ETF's base currency is the Korean Won, but it trades in Hong Kong and U.S. dollars. A strong performance in the underlying index could be eroded or even reversed by adverse movements in the KRW exchange rate. As with all ETFs, there is also the risk that the fund's market price will trade at a substantial premium or discount to its net asset value, driven by secondary market supply and demand.

Mirae Asset's Strategic Gambit

This launch is a calculated piece of a much larger puzzle for Mirae Asset Financial Group, a global behemoth with over US$439 billion in managed assets. Its ETF platform, which includes the well-known Global X brand, manages approximately US$275 billion globally and is a core pillar of its growth strategy. By planting a flag in Hong Kong with a competitively priced, high-demand product, Mirae Asset is reinforcing its commitment to the Asian market.

The move to launch a KOSPI 200 tracker is both an offensive and defensive maneuver. It leverages the firm's deep roots and expertise in its home market of South Korea while simultaneously challenging competitors in the critical financial hub of Hong Kong. By wielding its scale to offer lower fees, Mirae Asset is not just launching a product; it is making a statement about its intent to lead in the region's rapidly evolving asset management landscape.