EM WEEKLY FUND FLOWS MONITOR: Foreign selling continues, driven by Taiwan w/w; EM/Asia MFs raise exposure most in China, while trimming Korea in June; Korea leverage moderates from high; signs of National Team buying in China

Research evidence excerpt

EM WEEKLY FUND FLOWS MONITOR: Foreign selling continues, driven by Taiwan w/w; EM/Asia MFs raise exposure most in China, while trimming Korea in June; Korea leverage moderates from high; signs of National Team buying in China

Goldman Sachs EM Weekly Fund Flows Monitor

Focus: Korea Leverage ETF and Margin Financing

Exhibit 4: Domestic market leveraged ETFs’ AUM has fallen to the level before Exhibit 5: Despite the recent increased portion by leveraged ETF AUM in the

the single-stock leveraged ETFs launch total ETF market in Korea, leveraged ETFs portion remains around 5%

KRW KRW 16%

trn Domestic ETF Market AUM in History trn

600 40 Relative AUM Ratio:

14% Leveraged Domestic Equity vs. Total ETF Market

500 12%

All ETFs AUM 30

10%

2026-05-29, 24.71 25

Leveraged ETFs' AUM (RHS) 8%

300 20

6%

4%

100 2%

5 2026-07-22, 5%

2026-07-22, 21.54

0%

0 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 Oct-24 Jan-25 Apr-25 Jul-25 Oct-25 Jan-26 Apr-26 Jul-26 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 Jan-24 Jul-24 Jan-25 Jul-25 Jan-26 Jul-26

Source: Quantiwise, Goldman Sachs Global Investment Research Source: Quantiwise, Goldman Sachs Global Investment Research

Exhibit 6: Despite the market volatility, margin call to receivable has moderated Exhibit 7: Margin loan balance declined to 32trn KRW from 38 trn KRW at the

to 0.7% as of 23rd of July peak while sustaining its market cap adjusted level to 0.5%

Daily Margin Call to Receivable vs KOSPI Index (%) KRW trn Loans On Margin Account Balance

10000 12

40 Loans on Margin account balance 1.1%

Margin Loan Balance Relative to Market Cap [RHS] 9000 Margin Call to Receivable (RHS, %) 10 1.0% 35

KOSPI Index 0.9%

8000 8 30