Korea Investment Management on the 23rd unveiled an exchange-traded fund (ETF) that focuses on European defense-related corporations and held a defense fund seminar.

On the morning of the 23rd, Nam Yong-su, head of ETF Management, is presenting at Korea Investment Management's defense industry fund seminar. /Courtesy of Korea Investment Management

KIM held a defense fund seminar at the Korea Financial Investment Association in Yeouido on the morning of the day and unveiled the newly listed "ACE Europe Defense TOP10 ETF."

This product invests in the top 10 large-cap stocks among those listed in Europe with a high share of revenue from the defense industry.

Nam Yong-su, the Deputy Minister who leads KIM's ETF Management Division, said in a presentation, "As security threats persist, the North Atlantic Treaty Organization (NATO) agreed to increase defense spending to 5% of gross domestic product (GDP) by 2035," adding, "Given that NATO defense spending in 2024 (660 trillion won) was 2.2% of GDP, defense spending in 2035 would be 1,543 trillion won, comparable to last year's electric vehicle market size."

He went on, "The European Union (EU) and NATO are emphasizing a 'Buy European' policy for weapons procurement as they increase defense spending, so structural long-term growth of defense contractors in Europe is expected," adding, "This is why we should focus on European defense corporations that have both growth potential and technological prowess, and why our firm is unveiling the ACE Europe Defense TOP10 ETF today."

Kim Hyeon-tae, head of Global Quant Management, noted, "Not only the development of artificial intelligence (AI) technology but also a worldwide trend of expanding defense spending is driving up demand for satellite data," stressing, "Even the Golden Dome Project announced by the United States in May shows that the core of the project is a space-based missile defense system."

He added, "We are paying attention to SpaceX and Rocket Lab, which lowered space launch expense through reusable launch vehicle development; AST SpaceMobile, which became the first in the world to succeed in direct communication technology between satellites and mobile devices; and Planet Labs, which operates the most Earth observation satellites in the world."

KIM said that including the product newly listed on the day, the "ACE ETF" series listed on the Korea Exchange main board has reached 100 issues.

※ This article has been translated by AI. Share your feedback here.