On June 16, Samsung Asset Management announced the upcoming listing of the KODEX Gold Active Exchange-Traded Fund (ETF), set to debut on June 17. This new ETF invests in gold based on international standard prices, offering investors a stable alternative unaffected by domestic price distortions known as the “kimchi premium.”
Unlike traditional gold investments influenced by Korea’s local market fluctuations, the KODEX Gold Active ETF follows gold prices certified by the London Bullion Market Association (LBMA), ensuring alignment with global benchmarks. Samsung Asset Management emphasized that this approach enhances price transparency and liquidity while reducing unnecessary purchase costs.
The company explained that non-standard gold markets often suffer from price opacity and transaction instability, sometimes resulting in price discrepancies of up to 20%. Such gaps can cause investors to overpay compared to the true international gold value. By investing directly in ETFs tracking LBMA-certified gold prices, KODEX Gold Active effectively eliminates this risk.
The fund charges a competitive annual fee of 0.3%, which Samsung Asset Management claims is about 40% lower than fees associated with existing gold bullion ETFs, easing cost burdens for investors.
Shin Hyun-jin, manager at Samsung Asset Management, stated, “Amid ongoing global economic uncertainties, we are offering a transparent and stable gold investment product that follows international standard prices. By removing kimchi premium risks and significantly cutting fees, we aim to provide individual investors easier and more cost-effective access to the global gold market.”
