Hanwha Asset Management has expanded its presence in the Middle East by cross-listing two exchange-traded funds (ETFs) focused on South Korea's defense and manufacturing sectors on the Abu Dhabi Securities Exchange (ADX). The 'PLUS Korea Defense Industry Index ETF' (KDEF) and the 'PLUS Korea Manufacturing Core Alliance Index ETF' (KMCA) were cross-listed on November 2, according to a statement released on November 3.
This marks the first time a South Korean asset management product has entered the Abu Dhabi market through a cross-listing between the New York Stock Exchange (NYSE) and ADX.
The cross-listing is part of a memorandum of understanding (MOU) signed between the NYSE and ADX in November 2023, allowing securities listed on the NYSE to be traded on the ADX, facilitating securities substitution between the two markets. The UAE Securities and Commodities Authority (SCA) has reviewed and approved the listings.
As a result, Middle Eastern investors can now invest in South Korean defense and manufacturing-related ETFs through local brokerage firms without needing to open overseas accounts. Hanwha Asset Management anticipates that the ability to trade in the local currency, the dirham (AED), will enhance investment accessibility.
This development is particularly significant as it provides a new avenue for Middle Eastern institutional investors, who typically focus on products listed on their domestic exchanges, to invest in South Korean industries.
The cross-listing also represents Hanwha Asset Management's efforts to expand its business foundation in the Middle East into the financial and investment sectors. The company established a local entity in the Abu Dhabi Global Market (ADGM) in July 2022 to facilitate this cross-listing. The local entity plans to identify demand for KDEF and KMCA among institutional investors, family offices, and high-net-worth individuals (HNWIs), and will conduct product briefings and investment meetings with local brokerage firms and financial institutions.
A listing ceremony held on November 2 at ADX was attended by Lee Won-ik, the South Korean Ambassador to the UAE; Abdullah Salem Al-Nuaimi, CEO of ADX Group; and Choi Young-jin, Vice President of Hanwha Asset Management.
Han Ji-a, head of Hanwha Asset Management's Abu Dhabi office, stated, "With this listing, we aim to communicate the value of South Korea's defense and manufacturing sectors to local investors and strengthen our network with institutions, family offices, and brokerage firms, creating a pathway for Middle Eastern capital to flow into South Korea's core industries."
Hanwha Asset Management plans to expand its overseas listing markets, starting with Abu Dhabi. The company is pursuing listings on the London and Frankfurt exchanges and is also considering entering the real-world asset (RWA) market through the tokenization of PLUS ETFs.
Han Ji-a added, "Having broadened our investor base from New York to Abu Dhabi, we will leverage next-generation financial infrastructure to deliver Korean investment IP to global investors."
* This article has been translated by AI.
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