The Premier League club have an option to complete a permanent deal for a reported fee of £12.8 million once Hwang's loan is complete.
Hwang, nicknamed 'The Bull', was unveiled to Wolves fans on the pitch at Molineux prior to Sunday's game against Manchester United.
"Hwang's a player we've watched for a few years now, when he was at Salzburg," Wolves technical director Scott Sellars said.
"He's got a lot of talent and is very versatile. He can play across all the front positions, a striker, second striker or wide.
"He had a fantastic goal scoring record at Salzburg and will give us a good option in the front areas.
"He's got a lot of pace, power and strength. He's probably a little bit different to what we've got and we think he's a strong acquisition for the squad."
Hwang scored three goals in 29 appearances for Bundesliga side Leipzig after joining from Red Bull Salzburg in 2020.
At Salzburg, the 25-year-old netted 45 times in 126 games, while he has six goals for South Korea in his 37 internationals.
August 29, 2021