On the 9th, Hanwha Systems surged 22% intraday. It is seen as being driven by U.S. President Donald Trump saying he will increase next year's defense budget by more than 50%, and Hanwha Group Chairman Kim Seung-youn visiting Hanwha Systems business sites to mark the New Year and saying, "Space is Hanwha's mission."
As of 2:01 p.m. that day, Hanwha Systems was trading at 73,900 won on the Korea Exchange, up 13,600 won (22.55%) from the previous session. It rose to as high as 75,300 won intraday, setting a 1-year high.
Earlier, on the 7th (local time), U.S. President Donald Trump said he would raise next year's defense budget to $1.5 trillion, an increase of more than 50%, which is seen as improving investor sentiment for defense stocks.
Hanwha Systems is a diversified defense company engaged in the maritime systems business encompassing surface ship and submarine combat systems, as well as avionics such as active electronically scanned array (AESA) radars for fighter jets and command, control, communications, and computers (C4I) for surveillance, reconnaissance, and network-centric warfare (NCW).
In addition, Chairman Kim's visit on the 8th to Hanwha Systems' Jeju Space Center as his first on-site management activity of the New Year is seen as stoking investor sentiment. This is the first time Chairman Kim has personally visited Hanwha Systems business sites, and at the site, Kim emphasized, "Going to space is Hanwha's mission." Completed at the end of last year, the Jeju Space Center is equipped with facilities capable of producing 100 satellites annually.
Jang Nam-hyun, an analyst at Korea Investment & Securities Co., assessed it as "an option that can simultaneously enjoy the export momentum of Korea's shipbuilding and ground defense."