Hanwha Asset Management lists K-defense, K-manufacturing ETFs on Abu Dhabi exchange — a first for Korean asset managers

Hanwha Asset Management has listed two ETFs investing in South Korea's defense and manufacturing sectors on the Abu Dhabi Securities Exchange, as the firm moves to attract Middle Eastern capital. The strategy extends the firm's investor reach from New York to Abu Dhabi in a bid to build global demand for South Korea's core industries.

Hanwha Asset Management announced Tuesday that the PLUS Korea Defense Industry Index ETF (KDEF) and the PLUS Korea Manufacturing Core Alliance Index ETF (KMCA) were cross-listed on the Abu Dhabi Securities Exchange (ADX) on Monday (local time). It marks the first time a Korean asset manager has listed an ETF on the Abu Dhabi exchange.

A cross-listing allows a single company or financial product to be traded on two or more stock exchanges simultaneously, broadening investor access and expanding the investor base and trading opportunities.

The listing was built on an MOU signed between the New York Stock Exchange (NYSE) and ADX in November 2023. Both ETFs were developed by Hanwha Asset Management using proprietary indexes and are already listed on the NYSE; investors in both markets trade the same underlying securities, which are interchangeable between the two exchanges. The products also received review and approval from the UAE's Securities and Commodities Authority.

Local investors can now invest in South Korean defense and manufacturing companies through domestic brokerages in UAE dirhams, without opening a separate overseas account or adjusting to US market trading hours. The listing is particularly significant in that it opens a new channel for Middle Eastern institutional investors — who tend to focus on products listed on their home exchanges — to access South Korean industries.

Hanwha Asset Management pursued the listing through collaboration between its Abu Dhabi Global Market (ADGM) subsidiary, established in July last year, and its Seoul headquarters. Following the listing, the local subsidiary plans to identify product demand among institutional investors, family offices and high-net-worth individuals, and to hold investor briefings and meetings with local brokerages and financial institutions.

Hanwha Asset Management also plans to accelerate its overseas expansion using Abu Dhabi as a base. The firm is pursuing listings on the London and Frankfurt stock exchanges, while also exploring entry into the real-world asset market through tokenization of its PLUS ETFs.

Han Ji-a, head of Hanwha Asset Management's Abu Dhabi subsidiary, said the firm aims to use the listing as a starting point to raise awareness of the value of South Korea's defense and manufacturing sectors among local investors, strengthen its network with institutions, family offices and brokerages, and serve as a conduit channeling Middle Eastern capital into South Korea's core industries.