NYSE-ADX tie-up gives Middle Eastern investors local-currency access to Korean ETFs across time zones

Hanwha Asset Management Vice Chairman and Chief Marketing Officer Choi Young-jin (fifth from left), ADX Group CEO Abdullah Salem Alnuaimi and South Korean Ambassador to the United Arab Emirates Lee Won-ik attend a listing ceremony for the KDEF and KMCA ETFs at the Abu Dhabi Securities Exchange on Nov. 2. (Hanwha Asset Management)
Hanwha Asset Management Vice Chairman and Chief Marketing Officer Choi Young-jin (fifth from left), ADX Group CEO Abdullah Salem Alnuaimi and South Korean Ambassador to the United Arab Emirates Lee Won-ik attend a listing ceremony for the KDEF and KMCA ETFs at the Abu Dhabi Securities Exchange on Nov. 2. (Hanwha Asset Management)

Hanwha Asset Management's two US-listed exchange-traded funds tracking South Korea's defense and manufacturing sectors have been cross-listed on the Abu Dhabi Securities Exchange in the United Arab Emirates, the asset manager announced Tuesday.

The Plus Korea Defense Industry Index ETF and the Plus Korea Manufacturing Core Alliance Index ETF began trading on the ADX on Monday. Plus is Hanwha Asset's ETF brand.

The cross-listing was made possible under a framework established by a memorandum of understanding signed between the New York Stock Exchange and ADX in November 2023.

Hanwha Asset Management is the first Korean asset manager to bring its products to the Abu Dhabi market through the arrangement. The framework allows the two ETFs traded on the NYSE to be traded on the ADX, giving Middle Eastern investors exposure to Korea's defense and manufacturing sectors in their local currency without the need to open separate overseas brokerage accounts or navigate time zone differences.

Hanwha Asset Management plans to expand sales of the ETFs to local institutional investors, family offices and high-net-worth individuals through its local subsidiary in Abu Dhabi Global Market, established in July last year.

The asset manager is also pursuing listings in London and Frankfurt, Germany. It is considering tokenizing its ETF lineup to enter the real-world asset market.

"Starting with this listing, we aim to introduce the value of Korea's defense and manufacturing industries to local investors and strengthen our network with institutions, family offices and securities firms, creating a channel for Middle Eastern capital to flow into key Korean industries," said Han Jia, head of Hanwha Asset Management's Abu Dhabi office.

“Having expanded our investor base from New York to Abu Dhabi, we aim to make Korean investment products accessible to investors worldwide through next-generation financial infrastructure,” she added.


ch0221@heraldcorp.com