On Tuesday, exchange-traded funds focusing on South Korean stocks took a significant hit, spurred by reports that the country’s president has declared martial law.
The iShares MSCI South Korea ETF experienced a drop exceeding 5%. Similarly, the Franklin FTSE South Korea ETF fell by 4.4%, and the Matthews Korea Active ETF also saw a dip of 4.5%, according to the latest data from FactSet.
A closer look at the iShares MSCI South Korea ETF reveals Samsung Electronics as its most substantial holding, accounting for approximately 22% of the fund as of December 2nd, as indicated by BlackRock’s reports. This ETF, which manages nearly $4 billion in assets, also includes big names such as SK Hynix Inc., KB Financial Group Inc., and Hyundai Motor in its portfolio.
Stocks of South Korean companies listed in the U.S. and U.K. markets mirrored this downward trend. Coupang, South Korea’s leading online retailer, saw its shares tumble by more than 5%, while Samsung’s stock experienced an even steeper decline, dropping over 7%.
