"Strategic Industries Like AI, Bio, and Defense in One Basket"... Launch of RISE Korea Strategic Industry Active ETF

Government's 'ABCDEF' Strategic Industries United in a Single ETF
Simultaneous Investment in Policy Momentum and Global Growth Trends

KB Asset Management announced on January 20 that it will list an active exchange-traded fund (ETF) focused on investing in national strategic industries promoted by the government.

The RISE Korea Strategic Industry Active ETF is designed to allow convenient investment in the government-designated 'ABCDEF strategic industries' through a single ETF. By centering on industries that benefit from both government policy support and global structural growth trends, the fund pursues excess returns over the market through an active management strategy.

Since its launch, the government has selected AI·Semiconductor (A), Bio (B), Content·Culture (C), Defense (D), Energy (E), and advanced manufacturing (Factory, F) as key national strategic industries, expanding support across budgets, regulations, and finance. These sectors are considered core growth drivers for the domestic stock market, as they offer high mid- to long-term profit growth visibility in line with global trends, further boosted by policy momentum.

The RISE Korea Strategic Industry Active ETF builds its portfolio by selecting leading companies within each strategic industry, as well as companies structurally benefiting from policy and demand changes. As an active ETF, it flexibly adjusts industry and stock weightings in response to market conditions and actively leverages various investment opportunities, such as index inclusions/exclusions and corporate events.

In the AI·Semiconductor (A) sector, the fund focuses on the growth of the AI semiconductor market driven by increasing demand for AI training and inference, highlighting the domestic semiconductor competitiveness of companies such as Samsung Electronics and SK Hynix, especially in high-bandwidth memory (HBM). In the Bio (B) sector, the focus is on structural growth centered on contract development and manufacturing organizations (CDMO), amid regulatory improvements and the expansion of industry clusters.

For Content·Culture (C), the main investment points are the global spread of K-content and the government's policies to boost cultural exports. In Defense (D), the fund targets the growth of the domestic defense industry, which possesses export competitiveness and a value chain, amid prolonged geopolitical risks. In Energy (E), it seeks opportunities related to nuclear power, renewable energy, and power infrastructure, driven by rising AI electricity demand and the transition to new energy sources. For advanced manufacturing (F), the focus is on the potential recovery of manufacturing competitiveness through expanded investment in smart factories based on AI, robotics, and sensors.

Lee Joonseok, Head of ETF Marketing at KB Asset Management, introduced the RISE Korea Strategic Industry Active ETF as "an active ETF that brings together the strategic industries underpinning Korea's mid- to long-term economic growth into a single product." He added, "By comprehensively considering policy momentum, global growth trends, and corporate fundamentals, this ETF will serve as a meaningful investment alternative for investors anticipating a structural re-rating of the domestic stock market."