Hanwha System's stock price is rising in the early trading hours on the 16th. The price increase is influenced by the escalating military conflict between Israel and Iran, which has boosted the stock prices of domestic defense stocks.
As of 9:14 a.m. on the 16th, shares of Hanwha System are trading at 60,500 won, up 11.21% (6,200 won) compared to the previous trading day in the stock market.
The military conflict that began with Israel's preemptive strike on Iran in the early hours of the 13th is ongoing until the 15th (local time). As the clashes between the two countries enter their third day, both countries are attacking major military facilities, airports, foreign ministry offices, and energy infrastructure.
In the securities sector, it has been analyzed that this will be an opportunity factor for Korean defense companies. Jung Dong-ik, a researcher at KB Securities, noted, "The stock prices of domestic defense stocks are rising due to the conflict between Israel and Iran," and added, "As geopolitical risks are re-highlighted by this attack, the stock prices of Korean defense companies including LIG Nex1, Korea Aerospace Industries, MNC Solution, Hyundai Rotem, and Hanwha System have also risen significantly.
He further explained, "Israel is one of the major arms exporting countries, where cooperative and competitive relationships coexist with Korea," adding, "Hanwha has applied Israel's turret and active defense systems to the Redback armored vehicle and has also introduced and operated various long-range radars and drones.
In particular, it has been analyzed that Israel will have no choice but to restrict the overseas sale of reserve weapons or newly produced weapons for a considerable period to ensure its national defense. The researcher noted, "Especially for air defense missiles, even after the war with Iran ends, it will be necessary to stockpile production quantities for a considerable period," and added, "An increase in export opportunities for Korean-made weapons, including air defense missiles, main battle tanks, self-propelled artillery, drones, and components, is expected.