Samsung Asset Management Lists New "KODEX Korea TDF 2065 Active Qualified" ETF

The first Korea-based target date fund (TDF) exchange-traded fund (ETF), which allocates 100% of its portfolio to domestic stocks and bonds, has been launched in the TDF market, where “global diversification” has traditionally been considered a fundamental principle.

On August 25, Samsung Asset Management announced the new listing of the “KODEX Korea TDF 2065 Active Qualified” ETF, which invests solely in Korean stocks and bonds, automatically adjusting asset allocations over the life cycle according to the investor’s age.

In April, financial authorities revised relevant enforcement regulations to enable TDFs composed only of domestic assets to be recognized as “qualified TDFs” for stable operation. This product is the first qualified Korea-based TDF ETF to launch since the regulatory amendment, and under the new requirements, retirement pension (DC·IRP) accounts can allocate up to 100%—without the previous 70% cap on risky assets—to this product.

This ETF, targeting a retirement date of 2065, starts with approximately 80% exposure to domestic equities in the early years to maximize capital gains, but gradually increases allocation to safer assets such as bonds as retirement nears. By 2065, the proportion of safer assets will rise to 64% (and up to a maximum of 80% after retirement), automatically shifting the strategy to focus on capital preservation.

The equity portfolio is managed using both core assets, which reflect broader market returns (such as KOSPI and KOSPI200, accounting for around 50%), and satellite assets, which capture leading sectors in a timely manner (including semiconductors, AI power, secondary batteries, defense, and shipbuilding, also around 50%). Through the “smart trend strategy,” the fund dynamically adjusts equity and bond allocations and bond duration to seek excess returns over benchmark indices based on prevailing market conditions.

Importantly, the fund’s 100% domestic asset allocation eliminates currency risk and hedging costs, providing an effective inflation hedge for investors exposed to Korean real inflation after retirement. Even in regular brokerage accounts, investors benefit from tax exemptions on capital gains from domestic stock transactions.

Heeyoung Hwang, manager at Samsung Asset Management, said, “By introducing the new option of ‘100% domestic asset’ allocation, we are providing a customized choice to the existing TDF market focused on global asset allocation. This product automatically channels investments into Korea’s leading sectors, and we aim to develop it as a flagship pension fund that will allow people’s retirement assets to grow alongside the domestic capital market.”

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