In this document photo published by the South Korean Defense Ministry, ships of the South Korean navy participating in a naval exercise off the East coast on September 4, 2017 at the East Sea, in South Korea.
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The actions of the South Korean defense increased on Tuesday, in accordance with a wide pick-up in the names of defense worldwide, while the war of Russia-Ukraine fueling security problems.
The gains among the South Korean names were led by Hanwha Aerospace, Korea Aerospace Industries, Hyundai Rotem and Lig Nex1.
Hanwha aerospace shares jumped up to 16.67%, while Hyundai Rotem shares increased by 11.51%. Hyundai Rotem specializes in the production of railway equipment and defense products.
Meanwhile, the actions of Korea Aerospace and Lig Nex 1, which manufactures weapons and aerospace equipment, earned up to 7.77% and 7.76% respectively.
Other South Korean defense actions were also negotiated, with Vicktek stocks up 4.88%, Fistec up 4.69%and Paongsan up 7.65%.
South Korean military manufacturing companies saw the collection of demand in 2024 fed by massive weapons orders.
“The position of South Korea as an industrial defense power is supported by real figures”, a report published by the Italian institute for international political studies last April noted. He also pointed out that the country’s arms exports increased from $ 2 billion to the late 2010s, reaching $ 7.3 billion in 2021.
The collection in the actions of the South Korean defense occurs in the midst of the expectations of the higher defense expenses by Europe, after the regional leaders had security talks who mentioned reinforced military spending.
The meeting spoke of the need to strengthen Ukraine and European defense, after Trump and Ukraine President Volodymyr Zelenskyy clashed in the White House on February 28 for different opinions on the way of putting an end to the Ukraine Russia conflict.
British Prime Minister Keir Starmer has also undertaken to increase military spending to 2.5% of the gross domestic product by 2027. Other European nations can follow suit.
Morningstar Loredana Muharremi aerospace and defense analyst expects European defense expenses to reach 3.1% of the gross domestic product by 2029 and 3.5% by 2032.
“We believe that a 3.1% defense expenditure target by 2029 is achievable if it is strategically structured, the financing of debt potentially supporting growth and focuses on European production and research and development,” she wrote in a report on Monday.
Stoxx Europe’s aerospace and defense index jumped 8% on Monday. This has marked the best session in the index in 5 years.
Meanwhile, defense actions in the United States also climbed on Monday, after Trump clearly indicated that the prices on Mexico and Canada come into force as expected.
– Lim Jie de CNBC contributed to this report.
