South Korean Defense Stocks Lose $80 Billion as Earnings Misses and Export Delays Trigger Selloff
Updated
Updated · CNBC · Nov 5
South Korean Defense Stocks Lose $80 Billion as Earnings Misses and Export Delays Trigger Selloff
3 articles · Updated · CNBC · Nov 5
Summary
62 trillion won ($46.18 billion) — the combined market value of South Korea’s top four defense firms had fallen by end-October from a 52-week peak of 170 trillion won.
Hanwha Aerospace’s third-quarter operating profit dropped more than 46% and Hyundai Rotem’s fell 11.1%, reinforcing investor worries over delayed deliveries, one-off costs, a stronger won and slower conversion of defense pledges into firm orders.
Shares have been hit unevenly: Hyundai Rotem is down almost 60% this year, Hanwha more than 28%, while Korea Aerospace Industries has slipped just over 8% after posting roughly 52% sales growth and 32% profit growth.
Analysts also see a strategic shift as Ukraine and Iran highlight demand for drones, counter-drone systems and air defense, challenging Korean firms’ traditional strength in tanks, artillery and armored vehicles.
546 million euros in K9 orders from Spain, a $922 million Norwegian rocket-system deal and LIG D&A’s first $94 million K-SAAM export to Malaysia support the longer-term view that conventional weapons demand remains solid.