This Year's Top Performer 'PLUS Kbangsan'... Net Asset Value Surpasses 500 Billion Won

Hanwha Asset Management announced on the 12th that the net asset value of the 'PLUS K Defense' Exchange Traded Fund (ETF) has surpassed 500 billion KRW.

According to the Korea Exchange Information Data System, the net asset value of the PLUS K Defense ETF recorded 502.4 billion KRW as of the closing price on the 10th. This comes about a month after exceeding 300 billion KRW on the 11th of last month.

Among the approximately 900 ETFs listed domestically, PLUS K Defense has recorded the highest return this year. Based on the closing price on the 10th, PLUS K Defense has risen 82.51% since the beginning of the year. The return over the past three months is 102.66%, more than doubling in value.

Recently, as European countries have shown movements to strengthen their defense capabilities, expectations for increased profits for domestic defense companies exporting weapons to many NATO (North Atlantic Treaty Organization) countries have grown. This is due to the spread of a sense of crisis within Europe, as the United States has stopped support for Ukraine, which is at war with Russia, and has shown a pro-Russian stance maintaining close relations with Russia.

Europe announced the 'EU ReArm Europe' plan, totaling 800 billion euros (approximately 1,258 trillion KRW), directly mentioning 'European self-reliance' and emphasizing the need for rearmament. Since Europe has reduced weapons production facilities and supply chains since World War II, it is expected that the benefits will extend to K Defense as well.

The Middle Eastern market is also predicted to become a major demand source for K Defense. In the 'Korean Defence' report released by JP Morgan on the 6th, the increase in defense spending in the Middle East was cited as one of the positive factors for K Defense. The Middle East is increasing defense budgets and securing large quantities of military supplies. It was analyzed that there is a large-scale replacement demand due to the aging of tanks, armored vehicles, and self-propelled artillery introduced before 1990.

Choi Young-jin, Head of Strategic Business Division at Hanwha Asset Management, said, "The main markets for K Defense in 2025 are expected to be the Middle East and the United States," adding, "With changes in the international situation, Europe has once again emerged as a major market, creating additional demand." He continued, "Not only K Defense but the global defense market is currently experiencing a golden age, so the defense industry should be viewed as a mid- to long-term investment."

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