As the United States resumed airstrikes on Iran after a six-day pause, geopolitical tensions in the Middle East have escalated, leading to a surge in South Korean defense stocks.
According to the Korea Exchange, as of 1:18 PM on July 30, Hanwha Aerospace was trading at 879,000 won, up 8.52% (69,000 won) from the previous trading day.
At the same time, LIG Nex1 saw a 4.35% increase, reaching 647,000 won. SNT Dynamics and Korea Aerospace Industries rose by 7.76% and 1.96%, respectively, while Hyundai Rotem and Poongsan also experienced gains of 0.58% and 4.51% respectively.
The rise in defense stocks is attributed to the renewed military tensions between the U.S. and Iran. Typically, when the risk of conflict in the Middle East increases, the potential for expanded defense budgets in various countries becomes more pronounced, improving investor sentiment towards defense-related stocks.
The U.S. Central Command (CENTCOM), which oversees military operations against Iran, announced on July 29 via social media platform X (formerly Twitter) that airstrikes against Iran began at 8 PM Eastern Time that day.
CENTCOM explained that this operation was a response to an attempted attack by Iran on U.S. forces stationed in the Middle East the previous day. Iran had launched multiple ballistic missiles toward a U.S. military base in Jordan, but U.S. forces reported successfully intercepting all of the missiles.
* This article has been translated by AI.
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