Hanwha Asset Management Focuses on 'Active' This Year... To List 'K-Manufacturing ETF' in the U.S.

Targeting 100 Trillion Won in Net Assets, Accelerating Active ETF Push
Kosdaq and Copyright Active ETFs to Launch This Month
Aiming for Not Only the U.S., But Also European and Asian Markets

Hanwha Asset Management announced that after surpassing 10 trillion won in net assets for its 'PLUS ETF' this year, it is now setting its sights on reaching 100 trillion won. In a domestic ETF market dominated by passive products, the company plans to actively introduce products centered on active ETFs. Building on last year's success of the 'K-Defense' ETF listed in the United States, Hanwha Asset Management also plans to list a 'K-Manufacturing' ETF this year.

Choi Youngjin, Chief Marketing Officer (CMO) of Hanwha Asset Management, stated at the "PLUS ETF Total Net Asset Value Surpassing 10 Trillion Won Commemoration Press Conference" held at the Korea Exchange on the morning of the 4th, "The number 100 trillion has symbolic significance," adding, "We aim to grow into a meaningful ETF player managing approximately 100 trillion won."

Youngjin Choi, Chief Marketing Officer (CMO) of Hanwha Asset Management, is presenting at the "PLUS ETF 10 Trillion KRW in Assets Under Management Celebration Press Conference" held at the Korea Exchange on the morning of the 4th. Provided by Hanwha Asset Management

This year, the company is focusing on the area of active ETFs. Unlike passive ETFs, which track a benchmark index, active ETFs involve fund managers adjusting portfolio weights in response to market conditions in pursuit of returns that outperform the benchmark index. Depending on the manager's capabilities, higher returns can be achieved. Geunseop Keum, Head of the ETF Business Division at Hanwha Asset Management, explained, "If the requirement for benchmark index linkage is removed from the Capital Markets Act for active ETFs, a significant number of new ETFs will emerge," adding, "Since there are already too many passive ETFs, asset management companies will compete within the active ETF space."

The company plans to list three active ETFs this month alone. Targeting the gap in U.S. manufacturing, 'PLUS K-Manufacturing Core Companies Active' will be listed on the 24th, featuring Korea's key manufacturing companies. CMO Choi stated, "In the context of the U.S.-China power struggle, countries such as Taiwan, Japan, and Korea are among the few globally that can fill the manufacturing capacity gap in the United States," adding, "Especially in areas that the U.S. considers 'strategic manufacturing'—such as semiconductors, secondary batteries, defense, energy, and robotics—the U.S. needs to form a manufacturing alliance with Korea." Based on this analysis, the PLUS K-Manufacturing Core Companies Active ETF will include key alliance sectors of Korean manufacturing, such as semiconductors, energy, shipbuilding, and CDMO.

This ETF is also being prepared for listing in the U.S. market under the name 'PLUS Korea Manufacturing Core Alliance ETF (KMCA).' CMO Choi added, "This year, we are not only pursuing a U.S. listing but also working towards listing in the European market," and "We are also accelerating efforts related to global fundraising with investors from Asian markets and various pension funds." Previously, Hanwha Asset Management listed the 'PLUS Korea Defense Industry Index ETF (KDEF)'—which invests in K-Defense—on the U.S. stock market last year, raising approximately 170 million dollars to date. CMO Choi said, "By continuously listing the second and third KDEFs in overseas markets, Hanwha Asset Management's PLUS ETF will take the lead as a financial export force that attracts dollar funds from abroad."

Geunseop Kim, Head of ETF Business Division at Hanwha Asset Management, is making a presentation at the 'PLUS ETF Total Net Asset Value Surpassing 10 Trillion Won Commemoration Press Conference' held at the Korea Exchange on the morning of the 4th. Provided by Hanwha Asset Management

The Kosdaq Active ETF is also scheduled to be listed on the 10th. Head of Division Keum stated, "We believe that successful active investing is about managers identifying promising stocks and investing in a concentrated manner," adding, "We plan to compress the portfolio to around 30 core stocks, eliminate poor performers through negative screening, and aim to outperform existing strong players in the active ETF space using our own methodology."

Another active ETF scheduled for listing is the 'PLUS Global Copyright Active.' As artificial intelligence (AI) continues to develop, the value of source information needed for machine learning—that is, intellectual property (IP)—is expected to rise. Reddit, with its decades of accumulated community content, and The New York Times (NYT), known for its high-quality data, are among the main components.

To facilitate full-scale active ETF management, Hanwha Asset Management established a dedicated 'Strategic Management Team' at the beginning of the year. The team started with three experienced fund managers specializing in research, with plans to rapidly expand personnel. CMO Choi emphasized, "The primary reason for creating the Strategic Management Team is to declare our intention to engage in genuine competition in the active ETF market going forward."

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