Hanwha Asset Management to Launch Korea-themed ETFs in Middle East
Hanwha Asset Management is setting a new milestone for the South Korean ETF industry. The company plans to list its 'PLUS Korea Defense (KDEF)' ETF on the Abu Dhabi Securities Exchange (ADX), marking the first time a South Korean ETF enters the Middle Eastern market. Additionally, Hanwha intends to start the listing procedures for its 'PLUS Korea Manufacturing Core Alliance (KMCA)' ETF later this year.
This strategic move is expected to channel the region's abundant oil capital into Korean financial markets, enhancing domestic liquidity and growth prospects. Notably, Middle Eastern sovereign wealth funds, such as those in Abu Dhabi and Saudi Arabia, are shifting from purely passive investments to more selective, active allocations, which could increase demand for Korean industrial assets. Hanwha has already listed KDEF in the United States and is preparing to launch KMCA both in the U.S. and Middle Eastern markets.
However, there are risks tied to geopolitical uncertainties. Regional instability, such as the ongoing conflicts involving Iran, could impact global investor sentiment, emphasizing the need for robust risk management strategies.
Related News
Hanwha to Enter Middle East with ETF, Following Weapons - Korea Economic DailyHanwha, following its weapons, will penetrate the Middle East with ETFs. Hanwha Asset Management is promoting listing in the Abu Dhabi stock market with plans for cross-listing with U.S. launched products, marking the first domestic ETF entry into the Middle Eastern market. Additionally, there is an expectation of increased investments by major Middle Eastern investors in the domestic stock market with the upcoming launch of Korean manufacturing products in the latter half of the year.
Hanwha Now Sells Stocks Too…Is 'Oil Money' Flowing into KOSPI?Hanwha Now Sells Stocks Too… Is Oil Money Flowing into KOSPI?, Reporter Yang Ji-yoon, Securities