New ETF Bets On South Korea's AI Chip, Defense And Battery Leaders

South Korean industrial and technology themes are making a fresh push into U.S.-listed ETFs as Exchange Traded Concepts, in partnership with Korean firm Hanwha Asset Management, launched the PLUS Korea Manufacturing Core Alliance Index ETF (NYSE:KMCA), a fund targeting companies tied to Korea's strategic manufacturing ecosystem.

The ETF seeks exposure to firms connected to AI semiconductors, rechargeable batteries, robotics, defense, shipbuilding, power infrastructure, and nuclear energy — sectors increasingly viewed as critical to global supply-chain resilience and industrial policy trends.

Key Features of KMCA ETF

• Targets South Korea's core manufacturing industries and strategic export sectors.
• Includes exposure to AI semiconductors, batteries, robotics, shipbuilding, defense, nuclear energy, and power-grid companies.
• Designed to capitalize on global supply-chain diversification and industrial reshoring trends.
• Marks Hanwha Asset Management's second "PLUS" ETF launch in the U.S. market.
• Offers investors a thematic way to access Korea's role in next-generation industrial technology and infrastructure growth.

The launch comes as investors continue to look beyond traditional U.S. tech exposure and toward international manufacturing leaders benefiting from the AI boom, defense spending growth, and energy-transition investments. South Korea has emerged as a major player in several of these areas, particularly semiconductors and battery manufacturing, while geopolitical tensions and U.S.-China competition have accelerated demand for diversified supply chains.

These have pushed the country’s stock market to fresh highs. The KOSPI Index rose 31% in April, which was the second-best monthly gain since the January 1998 IMF bailout.

Hanwha Asset Management said Korea's manufacturing capabilities position the country as a strategic partner within U.S.-allied industrial networks. "As global investors increasingly focus on industrial resilience, supply chain security, and long-term competitiveness, Korea offers highly advanced manufacturing capabilities that align closely with these priorities," said Young Jin Choi, CMO of Hanwha Asset Management.

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