Strategic Capital Alliance for Future Security

Your excellencies, distinguished leaders of the Abu Dhabi global market and the financial expert from the around the world. It is a great honor to stand before you today in Abu Dhabi, the city of vision and the center of innovation. I am Jungu Kim, the CEO of HANA SMA Measurement, the finance investment arm of Hana Group, a leader in the defense and aerospace in aerospace industry in South Korea. We are witnessing a big shift in the global geopolitical landscape. We have entered new era where security and trust dictate the flow of capital.

With the geopolitical tensions rising globally, national security has become a more urgent critical mission than ever before. What is striking is a fundamental change in a warfare. While force industrial evolution technologies such as AI and drones are being integrated into warfare, we are observing the return of classical logical power on the battlefield. While western nations reduce defense budgets and their downside production lines in the postcold war era recent complex in Ukraine have proven that defense systems remain the core of modern warfare. Global defense spending reached a record high of around $3 trillion in 2024.

However, major defense nations like Germany and France and the US are struggling to meet this sorting demand due to supply chain bottlenecks and the shorty of skilled labor. During this supply gap, South Korea has established itself as the arsenal of a democracy capable of supplying NATO standard weapons with the greatest speed and capacity. At HANA as measurement, we have translated this structure changes and industry fundamentals into financial products. In July last year, we redefined our ETF brand as a plus, promising to generate plus returns above the market and add new value to our portfolio. The numbers have proven this commitment.

Look at our plus K defense ETF. The K defense super cycle has become a real reality. The asset value of the ETF went from 240 billion Korean one at the end of two 2024 to 1 trillion Korean one in just 10 months which is for more than 4x increase. This marks a monumental milestone as the first equity ETF in Korea to exceed one trillion Korean one. What is even more remarkable is the performance.

This product recorded a year-to-day return of a 212% achieving first place in the Korean market. Unlike using US ETFs where defense purity is diluted by including commercial air aircraft makers like Boeing. We focused purely on Korean defense companies such as Hano airspace and all the next one. Our success did not stop at domestic borders. In Q1, we directly listed the plus KD depense ETF on the New York New York Stock Exchange.

Since the listing, it has recorded a cumulative return of 139%. Meaning the performance of a NASDAQ and a major US defense ETF such as ITA and XR during the same period. This is a history moment where K defense is recognized not just as a Korean asset but as a global security asset. It is clear evidence that Hana's investment strategy is a proven effective on the global stage. Distinguished investors, we have also expanded into alternative investment to discover game changers that will reshape the future battlefield.

We are driving two key private equity strategies to invest in innovative companies leading future defense technology. First is the K defense tech fund. This bond invest in companies that will lead smart defense innovation by combining force industrial evolution technologies with a defense tech. We will actively discover and nurture promising ventures in the growth stage not only in Korea but also in advanced advanced technology nations like the US and Europe. Second, the SE HAR later stage defect fund.

This fund is managed by our headquarters and our US office in San Francisco. We employ a true two track strategy. The headers headquarters focus on deep tech companies in in Korea and Asia with a strong manufacturing foundation while the SF office is dedicated to discover cutting edge innovation in North America. We'll go beyond regional boundaries and expand through global collaboration. Innovative technologies from North America will connect with the supply chains of major corporations in Korea to accelerate commercialization and leading Korean companies will utilize our US network to go directly into global markets.

This will complete a deep tech value chain spanning east and west leading our partners to be successful at a global scale. Pan management is emerging as a leading global manager with a strong tank record and a deep specialized expertise in the defense sector. We have built complete investment portfolio covering the entire defense industry spectrum from ETFs investing in large defense company to from private equity funds investing in deep tech ventures. This is possible because we are not just an investment company but also a member of the broader Hana group. Abu Dhabi is a becoming a hub for advanced industry and global finance with a foresight into the future.

I hope to see Abu Dhabi's bold vision combined with HANA's defense investment capabilities. If you work together, we can build a strong platform that stands firm in the evolving global security landscape and we can lead the innovation of the future defense technology. Let the miracle of desert meet the miracle of the Hano River. Let us create a new miracle of a security and capital that advances global safety and a prosperity. Thank you very much for your time and attention.

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