Hanwha Asset Management is expanding its ETF strategy team from five to eight members as the Korean exchange-traded fund market approaches 500 trillion won in assets. Lee Su-jin, who joined the firm last month to lead the ETF strategy team, oversees research and active product management under the PLUS ETF brand. The expansion aligns with the Korean government's regulatory relaxation on fully active ETFs, with new product launches planned for the second half. Lee emphasized that active ETFs offer a solution for investors navigating complex AI investment themes by allowing professional managers to adjust portfolios as capital flows shift across sectors. The firm currently operates 19 active ETF products under its PLUS brand, focusing on structural growth themes rather than short-term trends.
Hanwha Asset Management Expands ETF Team to Eight Members
Hanwha Asset Management is increasing its ETF strategy team size from five to eight members. Lee Su-jin, who joined the firm last month, leads the team responsible for PLUS ETF research and active product management. The expansion responds to the Korean government's regulatory changes allowing fully active ETF structures.
Active ETFs Target AI Investment Complexity
Lee described active ETFs as investment tools that follow capital flows across rapidly evolving industries. In an interview on the 20th, she stated that a single active ETF covering an industry's mega-trend reduces investor burden compared to purchasing multiple passive ETFs. She noted that in AI investing, capital moves quickly from semiconductors to power infrastructure, data centers, and cooling systems, making portfolio adjustments through active management advantageous for investors.
Lee emphasized communication with investors as critical to active ETF management. She stated that when volatility increases due to individual stock risks or industry changes, managers must clearly explain asset inclusion reasons and rebound rationale to maintain investor trust. Hanwha Asset Management provides research and analysis materials to investors and distributors.
Korean Regulators Pursue Active ETF Correlation Requirement Changes
The Korean government is pursuing regulatory relaxation that would remove correlation coefficient requirements for active ETFs, aligning with major developed markets. Current regulations require passive ETFs to maintain a minimum 0.9 correlation with their underlying index, while active ETFs must maintain 0.7 or higher. Removing index tracking requirements would allow differentiated management strategies across ETF products.
Lee noted that in the early market phase, institutional challenges including front-running concerns from daily portfolio disclosure and liquidity provider quote burden will require resolution. She expects the active ETF market to develop by expanding manager discretion while maintaining investor protection mechanisms, following the U.S. model.
PLUS Brand Operates 19 Active ETF Products
Hanwha Asset Management operates 19 active ETF products under its PLUS brand. Recent launches include PLUS K Manufacturing Core Companies Active, PLUS Global Humanoid Robot Active, and PLUS Global Copyright Core Companies Active. Lee stated the firm focuses on discovering themes with high structural growth potential rather than developing short-term thematic products for market share expansion. She emphasized interest in commercializing structural growth themes such as global supply chain changes and industrial competition that can generate long-term returns.
FAQ
What is Hanwha Asset Management's ETF team expansion plan?
Hanwha Asset Management is expanding its ETF strategy team from five to eight members. Lee Su-jin, who joined last month, leads the team overseeing PLUS ETF research and active product management, with new product launches planned for the second half.
How do active ETFs differ from passive ETFs according to Lee Su-jin?
Lee stated that passive ETFs suit industries with high entry barriers and minimal landscape changes, while active ETFs benefit investors in dynamic industries like AI where capital moves rapidly across sectors such as semiconductors, power infrastructure, data centers, and cooling systems, allowing timely portfolio adjustments.
What regulatory changes is Korea pursuing for active ETFs?
The Korean government is pursuing regulatory relaxation to remove correlation coefficient requirements for active ETFs. Current rules require passive ETFs to maintain minimum 0.9 correlation with underlying indexes and active ETFs to maintain 0.7 or higher correlation.
