Defense stocks were all strong on the morning of the 27th. News broke the previous day of a $35 billion cooperation in the defense sector between the governments of Korea and the United Arab Emirates (UAE).
As of 10:51 a.m. that day on the Korea Exchange, LIG Nex1 was trading at 517,000 won, up 14,000 won (2.78%) from the previous session. At the same time, Korea Aerospace Industries (KAI) was trading at 193,100 won, up 9,300 won (5.06%).
In addition, Hanwha Systems (2.53%), Hyundai Rotem (3.64%), and Hanwha Aerospace (2.09%) were all rising.
On the 26th, Kang Hoon-sik, presidential chief of staff, said at Incheon Airport after visiting the UAE as President Lee Jae-myung's special envoy for strategic economic cooperation that the governments of Korea and the UAE had agreed to pursue $35 billion in projects in the defense sector.
The two countries signed a "defense cooperation framework memorandum of understanding (MOU)" and agreed to strengthen cooperation across the entire lifecycle—beyond a relationship of transacting weapons—to include design, personnel training, and maintenance.
Kang said regarding the specific business areas, "It is not appropriate to go into detail because this is an intergovernmental security matter," adding, "When combined across all areas, including integrated air-defense weapons, advanced air power, and naval power, the total is $35 billion."