Franklin FTSE South Korea ETF

FLKR

Market cap $272M

2025 was a significant year for international investing. Many portfolios keep international exposure in a core sleeve.

Diversification is usually a winning investment strategy, and that's proven especially true in 2025 when international stocks largely outperformed U.S. equities. While the S&P 500 is up about 15% this year, stocks in Spain have surged 40%, and South Korea is up 65%.

South Korea's central bank maintained its policy rate at 2.50% for the fourth consecutive meeting, staying on the sidelines as it raised its growth and inflation forecasts.

The U.S. and South Korea released details of a trade agreement on Friday that includes a $150 billion Korean investment in the American shipbuilding sector and an additional $200 billion earmarked for industrial sectors, the two countries said.

Franklin FTSE Korea ETF (FLKR) has surged nearly 80% YTD, reflecting South Korea's strong equity market performance and economic resilience. FLKR still trades at a discount to other Asian emerging markets, despite Korea's tech-driven, innovative economy and robust export growth. Recent economic data shows strong gains in semiconductors and manufacturing, with IMF projecting a rebound in South Korea's GDP growth for 2025.

Following are some of the details released by South Korea's chief policy adviser Kim Yong-beom, shortly after U.S. President Donald Trump said the two nations had reached a trade deal. Washington has not confirmed the details of the agreement.

The U.S. and South Korea agreed to a trade deal Wednesday following months of negotiations that will lower tariffs placed against the longtime Asian ally in exchange for hundreds of billions of dollars in investments toward the U.S.

Following are some of the details released by South Korea's chief policy advisor Kim Yong-beom, shortly after U.S. President Donald Trump said the two nations had reached a trade deal. Washington has not confirmed the details of the agreement.

A weakening greenback is being compounded by global de-dollarization and lower interest rates, creating an environment for emerging markets (EM) ETFs to prosper. In turn, more investors are flocking into EM equities, but for more targeted exposure, South Korea could present an intriguing alternative.

South Korea has a higher chance of reaching a trade deal with the U.S. by the time of the Asia-Pacific Economic Cooperation (APEC) summit in South Korea later this month, the country's chief policy advisor said on Sunday.