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IKO

$188.65-0.97%Asia Pacific9/100
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iShares MSCI South Korea ETF · BlackRock

Data as at 29 March 2026

TL;DR

Tracks South Korea's largest listed companies — Samsung, SK Hynix, LG Energy Solution, and Hyundai. South Korea is one of the world's leading semiconductor and battery exporters.

MER (Annual Fee)
0.65%
#5 lowest in Asia Pacific
1Y Return
+108.6%
3Y Return (p.a.)
+28.1%
Dividend Yield
0.64%
Trailing 12 months
AUM
$136.5M
Assets under management
Avg Daily Turnover
$978K
Avg shares × unit price
Unit Price
$188.65
As at 29 March 2026
Provider
BlackRock
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Strategy

Follows the MSCI Korea 25/50 Capped Index, which caps individual stocks to prevent excessive concentration. Managed by BlackRock. South Korea is classified as an emerging market under MSCI but as developed under FTSE.

Top Holdings

Samsung Electronics
22.8%
SK Hynix
7.5%
LG Energy Solution
3.8%
Samsung Biologics
3.2%
Hyundai Motor
3.0%
Celltrion
2.5%
POSCO
2.3%
KB Financial
2.1%
Key Fact

South Korea's semiconductor industry supplies a large share of the world's DRAM memory and NAND flash storage. Samsung and SK Hynix are the dominant players in these markets — making IKO a proxy for global technology infrastructure demand.

Suited for

Investors wanting dedicated exposure to South Korea's technology and industrial export sectors, particularly semiconductors and EV batteries.

Risks

Samsung alone can represent over 20% of the fund, creating significant single-stock concentration. North Korea geopolitical risk is a permanent feature of investing in South Korean listed companies.

ETFCheck Score9/100
Fees (40%)3
Fund Size (25%)16
Liquidity (20%)9
Yield (15%)15
How scores are calculated →
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Frequently Asked Questions - IKO

Why is IKO effectively a semiconductor bet rather than a broad South Korean market ETF?+
Samsung Electronics and SK Hynix together comprise approximately 40% of IKO's portfolio, and both are global semiconductor heavyweights. This extreme concentration means IKO's performance is heavily driven by the global chip cycle - memory chip pricing, AI demand, and consumer electronics trends. Australian investors should understand they're not buying diversified Korean economic exposure but rather a leveraged play on the semiconductor supply chain with some Korean financials and industrials alongside.
How does IKO's 0.65% MER stack up given its narrow country and sector concentration?+
At 0.65%, IKO's MER is relatively high for a passive single-country ETF, especially compared to IJP's 0.09% for Japan exposure. However, South Korea is classified as an emerging market by MSCI, and single-country emerging market ETFs typically carry higher fees due to market access costs and lower scale. Australian investors weighing IKO should consider whether the semiconductor-heavy exposure justifies the fee versus simply holding broader emerging market ETFs like VGE at 0.48%.
What geopolitical risks should Australian investors consider before buying IKO?+
South Korea faces unique geopolitical risk from North Korean tensions, which can trigger sharp short-term selloffs in Korean equities. Additionally, South Korea sits at the centre of US-China technology competition, and any escalation in chip export restrictions could materially impact Samsung and SK Hynix's revenues. Australian SMSF investors should treat IKO as a higher-risk satellite holding rather than a core allocation, given these tail risks combined with its concentrated sector exposure.
How does IKO's 1.28% yield compare to Korean market dividends and what's the tax treatment for Australians?+
IKO's 1.28% yield is modest and reflects South Korea's traditionally low dividend culture, though Korean corporates are gradually improving shareholder returns under the government's 'Value-up' program. Distributions are paid in AUD and classified as foreign income with no franking credits available. Australian investors should be aware that South Korea withholds 15% tax on dividends at source, but this can generally be claimed as a foreign income tax offset on your ATO tax return.