Korean ETFs Concentrate 40-50% in SK Hynix, SK Square on AI Chip Demand

According to Koscom ETF Check on July 8, Korean ETFs tracking value, ESG, and semiconductor themes are heavily concentrated in SK Hynix and SK Square, with the two stocks combined representing 40-50% of fund holdings. KODEX AI Semiconductor TOP2 Plus holds the highest concentration at 50.4%, with SK Hynix at 25.9% and SK Square at 24.5%, attracting 1.84 trillion won in inflows and delivering 160% year-to-date returns. HANARO Fn K-Semiconductor follows at 49.3% concentration.

The concentration occurs because SK Square, though a holding company, is classified under IT and software sectors in index composition rules, allowing asset managers to bypass semiconductor single-stock concentration caps. Managers unable to exceed the 30% single-stock limit on SK Hynix use SK Square as a workaround to gain additional exposure to semiconductor gains.