Hanwha Asset Management Doubles AUM in One Year After Rebranding... "Focusing on Three Mega-Trend Pillars"

AUM Grows from 3.6 Trillion to 6.4 Trillion Won
"We Will Offer Mega-Trend Products to Address the Korea Discount"

Hanwha Asset Management has nearly doubled its assets under management (AUM) within a year of rebranding its exchange-traded fund (ETF) line. The company plans to expand its ETF lineup and introduce solutions aligned with the institutionalization of virtual assets, aiming to establish itself as a leading asset management firm in the market.

Choi Youngjin, Chief Marketing Officer (CMO, Executive Director) of Hanwha Asset Management, is seen presenting at the 'PLUS ETF Rebranding Press Conference' at 63 Square, Yeouido, Seoul. Photo by Yoo Hyunseok

Choi Youngjin, Chief Marketing Officer (CMO, Executive Director) of Hanwha Asset Management, held the 'PLUS ETF Rebranding Press Conference' at 63 Square in Yeouido, Seoul, on July 23 and stated, "We have achieved a quantum leap since the rebranding," adding, "We will continue our efforts to help grow our clients' assets." The press conference was attended by CMO Choi and Kim Jungseop, Head of the ETF Business Division (Managing Director), who directly explained the achievements of the PLUS rebranding and the company's future vision.

In July of last year, Hanwha Asset Management changed its ETF brand from 'ARARIRANG' to PLUS. At the time of the change, AUM stood at 3.6 trillion won, but has since increased to 6.4 trillion won. This growth was driven by flagship ETFs such as those focused on the K-defense industry and high-dividend stocks. 'PLUS K-Defense' and 'PLUS High Dividend Stocks' have both grown into mega-sized ETFs with net assets exceeding 1 trillion won.

CMO Choi explained that the company focused on qualitative improvement rather than quantitative expansion, emphasizing "the power that moves the world." He stated, "We have taken on the role of 'national market guardians' and selected PLUS K-Defense and PLUS High Dividend Stocks as strategic ETFs," and added, "When everyone else was leaving the Korean market, we steadfastly promoted 'Korea Value-Up' and sought to discover the 'Korea Premium.'"

As for the defense sector, Choi explained that it is now a bona fide global megatrend. In fact, the defense ETF has gained recognition in the global market. The 'PLUS Korea Defense Industry Index (KDEF)' ETF, which was listed on the New York Stock Exchange (NYSE) in the United States in February this year, recorded the highest return in the U.S. ETF market in the first half of this year (excluding leveraged and inverse ETFs). This ETF was developed in collaboration between Hanwha Asset Management and the local asset manager Exchange Traded Concepts (ETC), and was benchmarked against 'PLUS K-Defense.'

CMO Choi said, "Geopolitical conflicts and security instability have become the 'new normal,'" and added, "The rise of K-defense is the result of reading these times and responding proactively."

Regarding high-dividend stocks, he stated, "The 'value-up' trend in the Korean stock market is now irreversible, and at the center of this are high-dividend stocks that have long suffered from chronic undervaluation," adding, "With the amendment of the Commercial Act and discussions on the separate taxation of dividend income, the value of high-dividend stocks will rise even further."

Hanwha Asset Management is also focusing on virtual assets. With discussions underway to institutionalize spot virtual asset ETFs, the company plans to respond swiftly. CMO Choi said, "Hanwha Asset Management has established a dedicated digital asset department and published research reports," adding, "We will leverage our accumulated expertise and insights to prepare digital asset-related solutions."

Kim, Head of the ETF Business Division, presented three core strategies for the PLUS ETF over the next year: resolving the Korea Discount (the undervaluation of the Korean stock market), addressing the retirement of baby boomers, and focusing on advanced technology. He stated, "This year marks the first year of efforts to resolve the Korea Discount," and added, "We will expand our product lineup centered on three pillars: resolving the Korea Discount, preparing for baby boomer retirement, and advanced technology themes that will drive change."

First, to address the Korea Discount, the company plans to continue expanding domestic investment products. Kim explained, "Although the Korean stock market has recorded the lowest returns among major markets over the past three years, it is now keeping pace with global markets thanks to aggressive policy initiatives," and added, "In September, we will launch a next-generation dividend ETF with enhanced capital gain features, and within the year, we plan to list the PLUS U.S. High Dividend Stocks ETF, which applies a high-dividend stock model that has been validated for 13 years, to the U.S. market."

At the same time, the company plans to significantly expand its product lineup to help the baby boomer generation secure stable living expenses after retirement. Kim emphasized, "Currently, the pension market is expanding, centered on dividend stocks and other equity investments," and added, "We plan to sequentially launch a variety of customized pension solutions, including those based on bonds and multi-asset allocation, beyond the existing equity-based dividend products."

In the advanced technology theme, the company will continue its phased approach to artificial intelligence (AI) evolution. Kim noted, "Hanwha Group Stock ETF and the Global Nuclear Value Chain ETF, which were listed in response to the economic bloc formation under Trump 2.0, have achieved high returns," and emphasized, "We will continue to focus on discovering advanced industries that will drive market changes ahead of the curve."

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