Shinhan Asset Management Lists New 'SOL Space & Aerospace Value Chain' ETF

Selective Investment in 10 Korean Space and Aerospace Companies
Including HVM, Intellian Technologies, and 8 Others

Shinhan Asset Management announced on June 16 that it will list the 'SOL Space & Aerospace Value Chain' Exchange Traded Fund (ETF), which invests in key companies within the domestic space and aerospace value chain.

The SOL Space & Aerospace Value Chain ETF selectively invests in companies operating in materials, components, equipment, satellite and communication infrastructure, and data utilization within Korea's space and aerospace industry.

Recently, the global space industry has been shifting from a government-led research and development-focused market to a New Space market led by private companies. Notably, on June 12, U.S. private space company SpaceX (SPCX) was listed on the NASDAQ. SpaceX is emblematic of the growth of the New Space industry, leading in areas such as reusable launch vehicles, low-Earth orbit satellite communications, and space-based data infrastructure.

Kim Junghyun, Head of ETF Business Group at Shinhan Asset Management, stated, "The listing of SpaceX could serve as a catalyst not only for heightened interest in U.S. space companies but also for a revaluation of domestic materials, components, and equipment companies that have entered the global space supply chain." He added, "Since the space industry is a sector where companies that enter the supply chain are highly likely to maintain their positions for a long time based on technological reliability and delivery track records, domestic companies that have secured competitiveness in areas such as specialized alloys and aluminum materials used in launch vehicles and satellite bodies, satellite antennas, high-frequency communication components, ground stations, and data processing infrastructure can continue to attract attention."

The Korean government is also promoting policies to foster the space and aerospace industry. Since the launch of the Korea Aerospace Administration (KASA), Korea aims to become one of the world’s top five space and aerospace powers by 2045, with plans to invest approximately 100 trillion won in the space industry. KASA is pursuing a paradigm shift from a government-led to a company-led model through private technology transfer, acting as an anchor demand creator, and building an industrial ecosystem.

The SOL Space & Aerospace Value Chain ETF classifies the space industry into upstream, midstream, and downstream sectors. The upstream sector consists of companies specializing in specialized alloys and lightweight materials and components used in launch vehicles and satellites. The midstream sector includes companies related to communication infrastructure such as low-Earth orbit satellite communications, inter-satellite links, and high-frequency communication components. The downstream sector focuses on companies that possess ground station infrastructure and offer satellite data reception, analysis, and processing services.

The ETF’s components are HVM, Intellian Technologies, Sphere, Satrec Initiative, Hanwha Systems, Daejoo Electronic Materials, Contec, RFHIC, ALMAC, and SeAH Besteel Holdings, totaling 10 companies. These comprise key players across the Korean space and aerospace value chain, including those specializing in satellite antennas, specialized alloys, satellite systems, data processing, and communication components.

Kim emphasized, "The SOL Space & Aerospace Value Chain ETF is not simply a space-themed product, but rather invests in domestic materials, components, equipment, and data utilization companies that can generate real sales and order opportunities during the growth of the global space industry." He further explained, "By investing together with the SOL US Space & Aerospace TOP10 ETF, investors can build a portfolio that encompasses both the Korean and U.S. space industries."

This content was produced with the assistance of AI translation services.