Bae Jae-gyu, head of Korea Investment Management, emphasized that investors should make long-term investments in Korea's core strategic industries that will lead the era of artificial intelligence (AI) rather than relying on short-term predictions.
Bae said in a welcome address at the ACE Semiconductor Plus Strategic Industry ETF listing seminar at the Conrad Hotel in Yeouido, Seoul, on the 10th, "Investment is a function of direction and time," adding, "You can accumulate wealth only by making long-term investments in Korea's core strategic industries that will lead the AI era."
Bae said, "Many investors repeat buying and selling and go through trial and error," and explained, "Focusing on and selecting Korea's four core industries with AI-era ecosystems—data centers, semiconductors, and power—and strategic industries (semiconductors, shipbuilding, defense, and nuclear power) is the best solution to withstand volatility."
In particular, warning against short-term investments such as leverage, Bae noted, "Even if you repeatedly earned revenue by buying stocks that seem cheap, if you suffer one or two big losses, there is a limit to creating wealth."
Nam Yong-su, head of the ETF division at Korea Investment Management, unveiled the management structure and strategy of the ACE Semiconductor Plus Strategic Industry ETF, which is set to debut on the 11th. The product is a passive ETF that takes semiconductors, a growth pillar, as its core, permanently includes three industries—shipbuilding, defense, and nuclear power—and then flexibly adds one industry (automobiles and humanoids as of the listing date) to invest across a total of five industries and 10 representative stocks. Operated based on quantitative rules, it provides a sustainable long-term investment environment, and the total fee is 0.40% per year (40 bp).
Nam said, "With the KOSPI trapped in a box range and earnings volatility high, we must move away from past investment approaches that focused on short-term timing trades," adding, "We recommend long-term investments that withstand the market's extreme volatility by diversifying into Korea's essential infrastructure industries that power the AI era."