Solactive and Mirae Asset Global Investments Hong Kong have partnered to launch the Global X K-pop and Culture ETF tracking the Solactive K-Pop and Culture Index, with the firms saying that they are envisaging the growth potential of the South Korean music and cultural sector. The industry’s success can be attributed to the international popularity of K-Pop, with artists like BTS and Blackpink leading the way, the firms say.
Gaining significant traction and interest in investments, the K-Pop event market was valued at USD8.1 billion in 2021 and is projected to reach USD20 billion by 2031, growing at a CAGR of 7.3 per cent. This global success drives growth in the Korean entertainment industry, the firms say, with the K-Pop segment growing 31.7 per cent in sales revenue in the first half of 2022 compared to the same period of the previous year.
This Solactive K-Pop and Culture Index aims to represent companies contributing to the popular South Korean culture, providing investors with strategic exposure to this fast-growing sector. Eligible companies are either headquartered in South Korea or generate substantial revenues from various Korean cultural activities, including K-Pop music, TV/film, gaming, internet, and beauty. It enables access to investors seeking to capture the performance of industry leaders responsible for driving the country’s cultural export success.
The ETF listed on 19 March 2024 on the Hong Kong Stock Exchange with the stock code 3158.HK.
Timo Pfeiffer, Chief Markets Officer at Solactive, says: “This index provides investors the opportunity to gain exposure to the vibrant Korean culture sector, reflecting the increasing global interest in K-pop. We are pleased to continue our partnership with Mirae and take great pride in launching the Solactive K-pop and Culture Index.”
