South Korea defense stocks soar with heavyweight Hanwha Aerospace surging 22%
A Cheongung missile launcher is displayed at the Seoul International Aerospace and Defense Exhibition (ADEX 2025) on Oct. 17, 2025, at Seoul Air Base in Seongnam, Gyeonggi Province, South Korea.
Nurfoto | Nurfoto | Getty Images
South Korean defense stocks soared on Tuesday after the country’s markets returned from a public holiday as the Iran war increased interest in defense names worldwide.
Shares of heavyweight Hanwha Aerospace, South Korea’s largest defense manufacturer, rose 22%, while shares of Korea Aerospace Industries rose more than 7%.
Shares of South Korean air defense systems manufacturer Lignex1 rose by 30 percent, while shares of Victek and Firstec, which produce electronic warfare systems and anti-aircraft missile components, respectively, rose more than 20 percent.
Ammunition manufacturer Poongsan increased by 14%, while Hyundai Rotem, the manufacturer of the K2 main battle tank, increased by over 18%.
The sector’s gains contrast sharply with the broader Kospi, which is down 2% and is now leading losses in Asian markets.
South Korea’s importance in global defense has been increasing since the Ukraine-Russia conflict, and the country aims to become one. fourth largest defense industry in the world By 2030.
Orders from European countries such as Poland and Romania led to major gains in the sector as countries on the continent increased their defense spending.
Global defense stocks rose on Monday as investors reacted to dramatic military tensions in the Middle East.
In Europe, Germany’s Hensoldt and Britain’s BAE Systems were among the top performers on the Stoxx 600, up nearly 5% and around 6%, respectively.
In the Americas, US firms Lockheed Martin and Northrop Grumman rose more than 3% and nearly 6% respectively.
— CNBC’s Elsa Olhen contributed to this report.
