A Cheonggang missile launcher is displayed during the Seoul International Aerospace and Defense Exhibition (ADEX 2025) at Seoul Air Base in Seongnam, Gyeonggi Province, South Korea, on October 17, 2025.
Nurfoto | Nurfoto | Getty Images
South Korean defense stocks saw huge gains on Tuesday after the country’s markets returned from a public holiday, as the Iran war boosted interest in defense names globally.
Shares of heavyweight Hanwha Aerospace, South Korea’s largest defense maker, rose 22%, while Korea Aerospace Industries gained more than 7%.
Shares in South Korean air defense systems maker Lignex 1 rose 30%, while Victech and FirstTech, which make electronic warfare systems and aircraft missile components respectively, rose more than 20%.
Munitions maker Poongsan rose 14%, while Hyundai Rotem, maker of the K2 main battle tank, rose more than 18%.
The sector’s gains contrasted with the broader Kospi, which was down 2% and is currently facing losses in Asian markets.
South Korea’s importance in the global defense sector has been increasing since the Ukraine-Russia conflict, with the country aiming to become the world’s fourth largest defense industry by 2030.
Orders from European countries Poland and Romania have made huge gains in the sector as countries on the continent increase their defense spending.
Global defense stocks soared on Monday as investors reacted to a dramatic military escalation in the Middle East.
In Europe, Germany’s Hensoldt and Britain’s BAE Systems were the top performers of the Stocks 600, up 5% and about 6%, respectively.
Stateside, US firms Lockheed Martin and Northrop Grumman rose more than 3% and nearly 6% respectively.
— CNBC’s Elsa Oelhen contributed to this report.
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