South Korea’s strategy to lure exchange-traded fund capital back to its domestic markets is failing to gain traction, according to reports from The Korea Herald.
The initiative, designed to bolster local liquidity and reduce reliance on foreign-listed products, has fallen short of expectations as investors continue to favor offshore alternatives.
The shortfall underscores the persistent challenge regulators face in steering capital flows.
Despite policy incentives aimed at making domestic ETFs more attractive, market participants remain hesitant to shift their portfolios.
This resistance suggests that structural barriers or perceived risks in the local market may outweigh the benefits of repatriation.
The development comes against a backdrop of heightened regulatory caution.