Seoul
South Korea’s major defence companies have reported impressive financial performance for the third quarter, primarily driven by significant arms export contracts, according to industry data released on Sunday.
The combined operating profits of four leading defence firms—Hanwha Aerospace Co., Korea Aerospace Industries (KAI), Hyundai Rotem Co., and LIG Nex1 Co.—reached approximately 753.8 billion won ($546 million) from July to September. This marks a substantial increase from 233.3 billion won during the same period last year. The total revenue for these firms also surged to an estimated 5.4 trillion won, reflecting a year-on-year growth of 30.9% from 4.1 trillion won.
Hanwha Aerospace, the industry leader, reported operating profits of 477.2 billion won for Q3, up significantly from 85.6 billion won in the previous year. The company’s sales soared by 61.9% year-on-year, amounting to 2.6 trillion won. This strong performance was bolstered by substantial exports of K9 howitzers and Chunmoo rocket launchers to Poland, supported by contracts valued at 8.2 trillion won and 5.6 trillion won secured in previous years. Hanwha Aerospace also boasts a robust order backlog of nearly 30 trillion won and anticipates continued success, with new contracts including one with Romania valued at 1.3 trillion won.
LIG Nex1 forecasts a 35.9% increase in sales to 728.3 billion won, with operating profit expected to rise by 52.8% to 62.8 billion won, while maintaining an order backlog of 19 trillion won.
