The stock prices of Hanwha Aerospace, a representative defense stock, and Hyundai Rotem are strong in early trading on the 17th. This is interpreted as a surge in buying sentiment due to expectations that the defense industry will benefit from Europe's rearmament.
As of 9:54 a.m. on the 17th, Hanwha Aerospace is trading at 752,000 won, up 47,000 won (6.67%) from the previous trading day. At the same time, Hyundai Rotem is trading at 105,400 won, up 3,800 won (3.74%) from the previous trading day.
On that day, both stocks rose by 7.39% and 3.74%, respectively, setting new highs for the year. Stocks associated with the defense industry, including LIG Nex1 and KAI, are also strong.
With projections from the securities industry that a significant portion of the benefits from European rearmament will go to Korean corporations, investor sentiment appears to have improved.
Choi Jeong-hwan, a researcher at LS Securities, noted, "Rearmament in Europe will be difficult for the EU itself in the short term," adding, "Even setting aside the industrial aspect of Europe's lack of manufacturing capacity, it will take a considerable amount of time to reach a political agreement due to differences in positions between Western and other European regions."
He also explained, "The global defense industry market is likely to be reshaped, with seven market participants, including Korea, Eastern Europe, Western Europe, the United States, Israel, China, and Russia, targeting key markets in Eastern Europe, Northern Europe, the Middle East, and the South China Sea," stating, "Considering the current global geopolitical situation and industrial capacity, Korean defense companies are expected to gain the most benefits in the short term."