K Defense Industry ETF to Be Listed on US Stock Market

Hanwha Aerospace, Hyundai Rotem, Korea Aerospace Industries, and other domestic defense industry companies have formed an exchange-traded fund (ETF) that will be listed on the New York Stock Exchange. This is attributed to the increased investment demand for 'K-Defense' amid ongoing global geopolitical uncertainties such as the prolonged Russia-Ukraine war and Middle East risks.

According to the financial investment industry on the 22nd, Hanwha Asset Management submitted the listing application for the ‘PLUS Korea Defense Industry’ ETF to the U.S. Securities and Exchange Commission (SEC) on the 9th. If it passes the approximately two-month review process, it is expected to be listed early next year.

This ETF benchmarks the ‘PLUS Kbangsan’ listed on the domestic stock market. PLUS Kbangsan includes Hanwha Aerospace, Hyundai Rotem, Korea Aerospace Industries, Hanwha Ocean, LIG Nex1, and others. Since the beginning of this year until the 18th of this month, it surged 67.61%, ranking first in returns among major global equity ETFs.

Hanwha Group plans to leverage the ETF listing to promote the competitiveness of Kbangsan in the global capital markets. Hanwha Ocean secured a U.S. Navy ship maintenance, repair, and overhaul (MRO) contract worth 20 trillion won annually in August.