"The Secret to ETF Investment Success Is 'This'... This Year's Key Theme Is Agentic AI"

[Interview] Jung-Hwan Lee, Managing Director of ETF Operations at Mirae Asset Global Investments

KOSPI to Quickly Reach 7,000 After the War... Spotlight on Agentic AI

Semiconductors and Nuclear Power: Structural Growth Leaders for the Future

"Investment should be the product of boredom, not dopamine."

Jung-Hwan Lee, Executive Director of ETF Operations at Mirae Asset Global Investments

Jonghwan Lee, Executive Director of ETF Management Division at Mirae Asset Global Investments, shared this perspective on ETF investment strategies in a recent interview with The Asia Business Daily. He said, "The market has been very hot lately, so many investors are trying to time the market. However, the real winners are those who practice what appears to be the most boring approach: systematic accumulation. Even in an era where the ETF market reaches 1,000 trillion won, the unchanging truth is that you must hold good assets cheaply and for a long time."

Regarding the increased volatility in the domestic stock market caused by a recent slowdown following the Middle East war, Lee predicted that the KOSPI could quickly reach the 7,000 level once the war ends. He stated, "The KOSPI is currently around 5,500, but after the war is over, reaching 7,000 should be easy. At a price-to-earnings ratio (PER) of 8 times, just moving to 10 times would put the KOSPI at 7,000." He believes that the current war presents a good opportunity for selecting specific stocks or sectors. Lee explained, "It is true that geopolitical risks increase market volatility in the short term, but they can also act as a filter, highlighting sectors where performance is proven. Even during wartime, semiconductors, defense, and energy security—beneficiaries of supply chain reorganization—are in the spotlight, and the nuclear sector, which is directly linked, is likely to see renewed strength once the war-driven volatility subsides."

Lee expects the sharp growth of ETFs to continue, with the 1,000 trillion won milestone not far off. "The domestic ETF market now stands at the pinnacle of qualitative growth, going beyond quantitative expansion," he said. "The paradigm has completely shifted from a short-term trading market centered on leverage and inverse products to long-term systematic investment using pensions and Individual Savings Accounts (ISA). The time it takes to move from 400 trillion won to 500 trillion won will be shorter, and I believe the 1,000 trillion won market will arrive soon. As more people invest long-term through pension accounts, the 'age of ETFs' is truly underway."

He identified "agentic artificial intelligence (AI)" as a key investment theme for this year. Lee commented, "The most important keyword for investors this year is the 'materialization of AI.' While the past two years have been about proving the potential of generative AI, we are now entering the era of agentic AI, where AI plans and executes on its own. This massive trend ultimately converges on two core infrastructures: memory and power (nuclear energy)." He explained that AI is evolving beyond simple Q&A to become a complex agent, dramatically increasing the volume of data read and written, which in turn drives soaring demand for memory semiconductors and electricity. "Now, high bandwidth memory (HBM) is not just a component, but a critical resource that determines the success or failure of AI computation. Advanced products like Samsung Electronics' HBM4E will be game changers in this market," he said. "Moreover, as AI becomes more intelligent, the electricity consumed by data centers will explode. The ultimate solution big tech companies have found to ensure stable power while maintaining carbon neutrality is, in the end, nuclear energy." He concluded, "In summary, the portfolio strategy for this year should be to build on two pillars: semiconductors, which create the great intelligence of AI, and nuclear energy, the fundamental source that powers that intelligence. These two sectors are not just themes; they will become structural growth stocks leading the market for years to come."

As for notable trends in this year's ETF market, Lee pointed to "the return of active management." He said, "The return of active management is a major issue in today's market. As the pace of market change accelerates, there is increasing preference for active ETFs that can respond flexibly. This trend has become even more pronounced with the launch of KOSDAQ active ETFs." He added, "Financial authorities have previously signaled the launch of active ETFs without index-tracking requirements. As the targets and strategies of active ETFs diversify, investor interest is expected to rise, and asset management companies will inevitably have to focus on active products."

This content was produced with the assistance of AI translation services.