Korea's Kakao posts record Q3 earnings, eyes AI-driven boost in Q4 SEOUL, November 07 (AJP) - Kakao reported its strongest quarterly earnings ever in the third quarter, with operating profit surpassing 200 billion won ($138 million) for the first time since its founding and expects the rollout of ChatGPT-powered services to offer meaningful boost to the chat platform most Koreans use starting fourth quarter. According to its regulatory filing Friday, Kakao’s consolidated revenue reached 2.087 trillion won in the July–September period, up 9 percent from a year earlier. Operating profit jumped 59 percent on year and 12 percent on quarter to 208 billion won — the highest in company history. As of 11:20 a.m., shares of Kakao were trading at 62,900 won, up 3.46 percent. The platform division generated 1.06 trillion won in revenue, up 12 percent on year. Advertising led the gains with an 11 percent rise to 325 billion won. Within ads, business-message services climbed 22 percent, while display advertising returned to growth — up 0.5 percent after five consecutive quarters of decline. Platform subsidiaries also delivered solid results, with combined revenue rising 24 percent on year to 453 billion won. Kakao Pay reported record operating profit, while Kakao Mobility posted steady gains. The commerce unit underperformed, recording 209 billion won in sales — down 0.1 percent on year and 6 percent on quarter. Still, Kakao said total transaction volume increased 4 percent to 2.5 trillion won as self-purchases rose. Some sales delayed by Chuseok-related logistics will be reflected in fourth-quarter results, it added. Revenue from Kakao’s portal business, led by Daum, fell 5 percent. To improve efficiency, Kakao plans to spin off Daum into a company-in-company (CIC). The content division posted 1.03 trillion won in revenue, up 5 percent on year. The games segment remained weak, with revenue tumbling 34 percent to 154 billion won due to delayed and canceled releases — a trend the company expects to continue for at least the next six months until new titles launch. In contrast, the music business grew 20 percent to 565 billion won, driven by new album launches and concert activity. The entertainment unit booked 84 billion won in revenue, down 11 percent on year due to postponed intellectual property releases. Meanwhile, the media division surged 75 percent to 96 billion won thanks to a robust slate of new film releases. Piccoma, the Japanese distribution arm of Kakao Webtoon, generated 127 billion won in revenue, up 2 percent on year. It remained Japan’s top-grossing app in 2025, and its operating profit doubled from a year earlier. Responding to questions about user engagement, a Kakao official said: “Average daily time spent on KakaoTalk has rebounded from 24 minutes to 26 minutes after the update, meeting our initial targets.” The redesign increased both session duration and advertising efficiency, the company added. Kakao expects double-digit growth in Talk Biz ad revenue, boosted by its new services Kanana, on-device AI – and ChatGPT deployment. 2025-11-07 11:29:53

Asian markets rebound in tandem with Wall Street recovery SEOUL, November 06 (AJP) - Asian stocks closed higher on Thursday, snapping a sharp two-day selloff as easing concerns over an AI bubble and a rebound on Wall Street lifted sentiment across the region. South Korea’s benchmark KOSPI rose 0.55 percent to 4,026.45, recovering from the “Black Wednesday” rout the previous day. Retail investors bought 885 billion won ($611 million) of shares and institutions added 832 billion won, while foreign investors sold 1.7 trillion won, reversing earlier intraday gains of more than 1.5 percent. Semiconductor leaders were mixed. SK hynix rose 2.42 percent to 593,000 won after reaching an intraday high of 607,000 won. Samsung Electronics slipped 1.19 percent to 99,400 won, falling back below the key 100,000-won threshold as foreigners offloaded more than seven million shares. AI-related stocks remained under pressure. Naver, which had surged the previous session on record quarterly earnings, fell 5.21 percent to 264,000 won on heavy profit-taking by foreign investors. Power-grid and transformer names extended recent gains. Hyosung Heavy Industries added 1.62 percent to 2,255,000 won, HD Hyundai Electric rose 0.81 percent to 875,000 won, and LS Corp. jumped 5.58 percent to 217,500 won on optimism over its electricity value-chain businesses including LS Cable and LS Electric. Japan’s Nikkei 225 gained 1.19 percent to 50,810.50, partially recovering Wednesday’s steep drop. Daikin Industries surged 7.79 percent to 19,295 yen ($125.3) after reporting stronger-than-expected earnings on robust industrial cooling demand. China’s Shanghai Composite Index advanced 0.97 percent to 4,007.76, reclaiming the 4,000 mark. Rare-earth producer Inner Mongolia Baotou Steel Union was steady at 2.7 yuan ($0.38) as momentum in the segment eased after U.S.-China trade talks. Cutting-tool maker Beijing Worldia Diamond Tools rose 10.7 percent to 56.13 yuan. Elsewhere in the region, Taiwan’s TAIEX gained 0.66 percent to 27,899.45, and Hong Kong’s Hang Seng Index climbed 2.12 percent to 26,485.90. 2025-11-06 17:56:30

Korea's record Jan-Sept current account flags deepening reliance on chip exports SEOUL, November 06 (AJP) - South Korea’s thriving semiconductor business has pushed the country’s current account surplus to its largest-ever level for September, but the details point to a growing dependence on a narrow set of export engines. Preliminary Bank of Korea data show the current account logged a $13.47 billion surplus in September, lifting the cumulative black to a record $82.77 billion for the January–September period — up 23 percent from a year earlier. The goods balance contributed a surplus of $14.24 billion, supported by a 9.6 percent rise in exports to $67.2 billion. From January to September, the goods surplus totaled $85.9 billion, about $14.2 billion higher than a year age. Semiconductors and shipbuilding remained the primary drivers of growth. Chip exports surged 22.1 percent on-year to $16.79 billion, fueled by strong global demand for high-bandwidth memory (HBM) chips. SK hynix posted an operating profit of 11 trillion won ($7.7 billion) in the third quarter, while Samsung Electronics recorded 7 trillion won in chip earnings, underscoring the industry’s outsized contribution to Korea’s external balance. Ship exports also climbed 23.8 percent to $2.77 billion on robust global orders for LNG carriers and other high-value vessels. Hanwha Ocean reported a record third-quarter operating profit of 290 billion won ($200 million). Steel exports offered further support, rising 2.5 percent to $4.01 billion as signs of stabilization emerged despite continued competition from Chinese producers. Korea’s services sector remained a structural drag. The services balance posted a $3.32 billion deficit in September, widening the cumulative shortfall to $22.7 billion in the first nine months of the year — about $5 billion deeper than a year earlier. The travel account continues to make up the largest red. Inbound visitors climbed 16 percent on-year to 14 million, but revenue gains were subdued as solo and small-group travelers replaced big-budget tour groups, reducing duty-free and package-tour spending. The intellectual property (IP) account logged an $850 million deficit, compared with a $660 million shortfall a year earlier, highlighting Korea’s struggle to monetize its cultural output. A Korea Chamber of Commerce and Industry (KCCI) report found no Korean names among the world’s top 50 IP-based goods revenue earners. The United States dominated the list with 32 companies — including Netflix and The Walt Disney Company, followed by Japan – home to Sony Pictures - with seven. Even the hit K-pop–themed Netflix animation “K-pop Demon Hunters” is based on IP owned by Netflix, which acquired the rights from Japan’s Sony Pictures — a reminder that Korea’s expanding cultural footprint often rests on foreign-controlled intellectual property. 2025-11-06 17:54:56

Asian stocks under broad foreign selloff, KOSPI and Nikkei biggest casualties SEOUL, November 05 (AJP) - Asian stocks tumbled across the board on Wednesday, with recent winners in Seoul and Tokyo turning into the day’s biggest losers. South Korea’s benchmark KOSPI closed down 2.85 percent at 4,004.42, barely holding the psychologically important 4,000 level. The index had plunged more than 5 percent in early trading, triggering a sidecar halt. The selloff followed mounting fears of a potential U.S. market bubble after steep losses in Palantir Technologies and other major AI-linked stocks. Sentiment deteriorated further as the U.S. Supreme Court began hearings on the legality of the Trump administration’s reciprocal tariff structure, unsettling investors in Korea and Japan, both heavily exposed to U.S. trade flows. Warnings from U.S. asset manager Scion Asset Management on Tuesday that key AI-related stocks were “overheated” reinforced concerns. The caution echoed remarks in recent days from Goldman Sachs CEO David Solomon and Morgan Stanley CEO Ted Pick, which helped spark a sharp correction in U.S. equities. Foreign investors offloaded a net 2.51 trillion won ($1.72 billion) in Korean shares, driving the downturn, while retail investors bought 2.56 trillion won to absorb the selling. Index bellwethers Samsung Electronics and SK hynix led the slump. Samsung fell 4.1 percent to 100,600 won after briefly dipping to 96,700 won before trimming losses. SK hynix also slid sharply intraday, dropping below 550,000 won before recovering part of the decline to finish 1.19 percent lower at 579,000 won. Amid the market turmoil, Naver defied the downtrend. The tech giant jumped 4.31 percent to 278,500 won after reporting record third-quarter earnings earlier in the day on the back of expanded AI integration, standing in sharp contrast to the broader AI-driven rout across global markets. The KOSDAQ also slid, losing 2.66 percent to 901.89 after triggering a mid-day sidecar before rebounding above the 900 level. Japan’s Nikkei 225 dropped 2.5 percent to 50,212.27. SoftBank Group plunged 10 percent to 22,640 yen ($147.4), while Hitachi Construction Machinery nosedived 12.17 percent to 4,382 yen after Hitachi Ltd. said it would divest its stake, ending the unit’s subsidiary status. Elsewhere in Asia, Taiwan’s TAIEX shed 1.42 percent to 27,717.06, pressured by the same U.S.-led “AI bubble” fears. In contrast, Chinese and Hong Kong stocks held up better than their regional peers. The Shanghai Composite Index rose 0.23 percent to 3,969.25, while the Hong Kong Hang Seng Index slipped just 0.36 percent to 25,860 as of 4:30 p.m., marking the smallest decline among major Asian markets. 2025-11-05 16:54:41

KRW falls to weakest in 7 mo as forex data implies limited room for Seoul to defend currency SEOUL, November 05 (AJP) - The South Korean won’s recovery — fueled by the Korea-U.S. trade deal during APEC week and a bullish stock market — proved short-lived as the U.S. dollar climbed to a seven-month high amid renewed concerns over frothy AI-related stocks. The dollar hit 1,446.3 won on Wednesday, its strongest level since April, as foreign investors dumped more than 2 trillion won worth of KOSPI shares as of 2:00 p.m., dragging the benchmark index down more than 3 percent. While the heavy foreign profit-taking reflects the KOSPI’s staggering 70 percent gain so far this year, the upward pressure on the dollar-won exchange rate is largely driven by external factors — leaving Seoul with limited policy options. According to central bank data released Wednesday, South Korea’s foreign reserves stood at $429 billion at the end of October, up $6.8 billion from the previous month. It marked the sixth straight monthly increase and the highest level in 21 months, occurring despite verbal interventions aimed at curbing excessive bias toward a weaker won. The rise in reserves suggests authorities have refrained from deploying significant firepower to defend the currency. Foreign currency deposits increased $7.4 billion to $25.9 billion, supported by robust export performance. Exports in October climbed 3.6 percent year-on-year to a record $59.6 billion, with the cumulative trade surplus already surpassing last year’s total — a factor likely boosting foreign-currency deposits. Improved investment returns at domestic pension funds and financial institutions also contributed. The National Pension Service’s Investment Management Division reported an 8.6 percent return on its overseas equity portfolio — including major U.S. stock market holdings — from January through August. Globally, South Korea moved up one notch to ninth place in foreign-reserve rankings, overtaking Hong Kong, whose holdings fell by about $2.5 billion in October. Despite strong exports and a buoyant stock market, the won has remained weak after briefly strengthening to 1,430 per dollar following Seoul and Washington’s final agreement on payment terms for Korea’s $350 billion investment package last week. The dollar, which averaged 1,453.39 won in January, had eased to 1,364.66 won in June before rebounding to a monthly average of 1,431.17 won as of Nov. 4. According to Park Sang-hyun, researcher at iM Securities, the pressure largely reflects a renewed risk-off mood. “The chance of another rate cut at the January 2026 FOMC meeting is diminishing,” Park said. “Concerns over the financial instability of U.S. regional banks and the prolonged federal government shutdown have restricted liquidity flows, pushing the dollar higher.” Park added that the U.S. Supreme Court’s review of the cross-tariff legality case has further supported the dollar. The court began hearings Wednesday on a lawsuit filed by Democratic-led states and small-business associations challenging the legality of the mutual tariff framework. A ruling against the policy could invalidate the bilateral tariff agreement, dimming prospects for future rate cuts and bolstering the dollar’s strength. The launch of Prime Minister Takaichi Sanae’s new cabinet in Japan — which reaffirmed a policy stance favoring a weaker yen — also weighed on the won-yen pair. Since South Korea and Japan compete directly in key export markets and product categories, Seoul has little choice but to partially align its monetary stance with Tokyo’s to maintain competitiveness. 2025-11-05 14:47:42

Asian markets retreat as regional winners KOSPI and Nikkei give way to profit-taking SEOUL, November 04 (AJP) - Asian stocks fell across the board Tuesday as profit-taking swept through the region, with South Korea’s KOSPI posting the steepest loss among major Asian benchmarks and Japan’s Nikkei 225 also tumbling sharply. South Korea’s KOSPI slid 2.37 percent to close at 4,121.74, wiping out the previous day’s gains. Foreign investors dumped 2.2 trillion won ($1.5 billion) worth of shares, joined by institutional investors who offloaded 498.6 billion won. Individual investors, however, stepped in aggressively, net buying 2.6 trillion won as they searched for bargains in a market that recently enjoyed historic momentum. Chip heavyweights that had powered recent rallies on strong earnings and the so-called “Jensen Huang effect” reversed sharply. Samsung Electronics sank 5.58 percent to 104,900 won, while SK hynix fell 5 percent to 589,000 won. Both had surged in recent weeks on record quarterly results and NVIDIA CEO Jensen Huang’s high-profile visit to Seoul, but succumbed to heavy profit-taking. SK hynix’s pullback was further intensified after the Korea Exchange designated the stock as an “investment alert,” citing excessive use of margin accounts following its more than 10 percent jump the previous session. Defense stocks that had soared on blockbuster earnings also retreated. Hanwha Aerospace slipped 3.07 percent to 1,010,000 won, while Hyundai Rotem fell 5.93 percent to 230,000 won. By contrast, copper and cable shares rallied after Microsoft CEO Satya Nadella warned in a podcast that “the AI industry will face bottlenecks if power supply issues are not resolved.” Taihan Cable surged 7.75 percent to 27,100 won, and LS, the parent of LS Cable, gained 2.3 percent to 222,500 won. The tech-heavy KOSDAQ bucked the broader decline, rising 1.31 percent to 926.57, led by a strong rebound in biotech. HLB, the fifth-largest company on the index, jumped 13.68 percent to 53,600 won after announcing plans to issue 201 billion won ($140 million) in exchangeable bonds to U.K.-based hedge fund LMR Partners. In Japan, the Nikkei 225 dropped 1.74 percent to 51,497.20, as investors locked in profits following the index’s run of record highs. AI-linked names led the pullback, with Advantest tumbling 5.86 percent to 21,780 yen ($141.8) and SoftBank Group sliding 7 percent to 25,160 yen. Cable-related stocks in Tokyo mirrored Seoul’s strength, with Sumitomo Cable jumping 7.3 percent to 412 yen, lifted by Nadella’s comments on looming power-supply constraints. Elsewhere in the region, China’s Shanghai Composite Index dipped 0.41 percent to 3,960.19 on persistent unease over U.S.–China trade tensions. Taiwan’s TAIEX lost 0.77 percent to 28,116.56, while Hong Kong’s Hang Seng Index fell 0.79 percent to 25,952.40. 2025-11-04 17:34:29

South Korea's inflation gains fastest in 15 months, markets price in rate freeze SEOUL, November 04 (AJP) - South Korea’s consumer inflation accelerated at the fastest pace in 15 months in October, reinforcing market expectations for another rate freeze this month as authorities attributed much of the pickup to increased spending during the extended Chuseok holiday, government data showed Tuesday. According to the October consumer price index (CPI) released by the Ministry of Data and Statistics, headline inflation rose 2.4 percent from a year earlier, the quickest pace since the 2.6 percent gain logged in July last year. Personal service charges — a category covering overseas travel and hospitality — climbed 3.6 percent, adding 0.7 percentage point to the overall price increase. Prices of agricultural, livestock and fishery products rose 3.1 percent, the second-largest contributor, largely reflecting Chuseok demand as families prepared traditional holiday meals. Ingredients for typical holiday offerings posted some of the sharpest increases: rice up 21.3 percent, apples up 21.6 percent, pork up 6.9 percent, mackerel up 11 percent, and eggs up 6.9 percent. Dining-out prices remained firm, rising 3.0 percent, though overall fresh food prices fell 0.8 percent. Housing costs continued to edge up on persistent market instability, with monthly rents rising 1.1 percent and long-term rental deposits (jeonse) up 0.5 percent. Fuel prices jumped 4.8 percent, the biggest rise in eight months, due to a weaker won and a base effect from last October’s 10.9-percent plunge. Diesel rose 8.2 percent, while gasoline prices increased 4.5 percent, reflecting the combined impact of U.S. sanctions on Russian oil companies and OPEC+’s production halt. Core inflation — excluding volatile food and energy — also strengthened, rising 2.5 percent on year. Whether the firmer inflation will sway the Bank of Korea’s final rate-setting meeting of the year on Nov. 27 remains unclear, as policymakers view the latest uptick as largely temporary. The bond market, meanwhile, continues to discount the likelihood of a rate cut this year. As of Monday, benchmark government bond yields stood at 2.741 percent for 3-year notes, 2.883 percent for 5-year notes, and 3.086 percent for 10-year notes, up 2.5 to 2.8 basis points. The Bank of Korea kept its policy rate at 2.50 percent for a third straight meeting last month, with Governor Rhee Chang-yong signaling that the current easing cycle may be nearing its end. 2025-11-04 11:22:02

Asian markets recover, KOSPI and Nikkei continue to test new highs SEOUL, November 03 (AJP) - Asian stocks rebounded on Monday, with South Korea and Japan extending their record-setting rallies on expectations of stronger chip-sector earnings and upbeat corporate results. The benchmark KOSPI jumped 2.78 percent to a new closing high of 4,221.87. Retail investors drove the rally, purchasing 651.2 billion won ($456 million) worth of shares, followed by institutions with 443.2 billion won. Foreign investors sold about 795 billion won, taking profits after the recent surge. Chip stocks again led the charge. SK hynix soared 10.9 percent to 620,000 won ($434.2), marking another all-time high as brokerages including Nomura Securities and Goldman Sachs raised profit estimates. Nomura projected the memory maker’s operating profit to reach 99 trillion won in 2026 and top 100 trillion won in 2027. Samsung Electronics also advanced, adding momentum to the sector’s upward trend. Defense stocks strengthened after reporting strong quarterly results. Hanwha Aerospace climbed 6.44 percent to 1,042,000 won, while Hyundai Rotem gained 6.07 percent to 244,500 won. Both companies said their defense divisions accounted for the bulk of third-quarter earnings, with operating profit rising 79 percent at Hanwha and 102 percent at Rotem. Japan’s Nikkei 225 advanced 2.12 percent to an all-time high of 52,411.34. Konami surged 16.81 percent to 25,740 yen ($167.19) after posting a 48 percent increase in second-quarter operating profit. Japan Tobacco rose 8.93 percent to 5,365 yen on a 27.2 percent profit gain, while Hitachi added 7.15 percent to 5,318 yen, supported by solid third-quarter results and news of a new high-speed rail project in Italy. China’s Shanghai Composite Index edged up 0.55 percent to 3,976.52, trimming last week’s losses. Analysts said gains were limited as the outcome of the Trump–Xi summit largely matched market expectations. Hong Kong’s Hang Seng Index was up 1 percent at 26,160 as of 4:15 p.m., helped by its relative insulation from mainland market pressures. Taiwan’s TAIEX added 0.36 percent to close at 28,334.59, rounding out a broadly positive session for Asian equities. 2025-11-03 17:46:27

Korean Economy/Business Calendar SEOUL, November 03 (AJP) - Nov. 4, Tue Consumer Price Index, October 2025 (Ministry of Data and Statistics) Q3 Results (EcoPro BM) Q3 Results (Krafton) Q3 Results (GS E&C) Nov. 5, Wed Economically Active Population Survey, August 2025 (Ministry of Data and Statistics) Q3 Results (Naver) Q3 Results (EcoPro and its subsidiaries) Q3 Results (Kakao Bank) Q3 Results (Doosan Enerbility) Q3 Results (Hanwha Solutions) Nov. 6, Thu Multicultural Population Dynamics Statistics, 2024 (Ministry of Data and Statistics) Balance of Payments in September 2025 - preliminary (Bank of Korea) Q3 Results (CJ ENM) Q3 Results (StudioDragon) Nov. 7, Fri Q3 Results (Kakao) Q3 Results (KT) Q3 Results (Doosan) Q3 Results (YG Entertainment) Nov. 10, Mon Trade Statistics by Business Characteristics, Q3 2025 - Preliminary (Ministry of Data and Statistics) Q3 Results (NHN) Q3 Results (HYBE) Nov. 11, Tue Social Survey Results 2025 (Ministry of Data and Statistics) Q3 Results (CJ Cheiljedang) Q3 Results (NCSOFT) Nov. 12, Wed Employment Trends, October 2025 (Ministry of Data and Statistics) Monetary and Liquidity Aggregates, September 2025 (Bank of Korea) Q3 Results (Pearl Abyss) Q3 Results (JYP Entertainment) Nov. 14, Fri Export/Import Price + Trade Indexes, October 2025 - preliminary (Bank of Korea) Nov. 18, Tue Household Credit, Q3 2025 - preliminary (Bank of Korea) Nov. 19, Wed International Investment Position, Q3 2025 - preliminary (Bank of Korea) Nov. 21, Fri PPI, October 2025 - preliminary (Bank of Korea) Nov. 25, Tue CSI, November 2025 (Bank of Korea) Nov. 26, Wed Population Trends, September 2025 (Ministry of Data and Statistics) BSI and ESI, November 2025 (Bank of Korea) Nov. 27, Thu Household Income and Expenditure Survey Results, Q3 2025 (Ministry of Data and Statistics) Nov. 28, Fri Industrial Activity Trends, October 2025 (Ministry of Data and Statistics) 2025-11-03 15:32:24

UPDATE: Hanwha Aero and Hyundai Rotem show off K-defense muscles in Q3 SEOUL, November 03 (AJP) - South Korean weapons makers kept up their record-setting earnings streak in the third quarter, powered by solid demand for Korean defense systems known for proven technology and rapid delivery. Hanwha Aerospace posted its strongest third-quarter performance on record, lifted by robust exports and solid contributions from subsidiary Hanwha Ocean — underscoring the group’s growing dominance across Korea’s expanding defense-industrial value chain. The company said Monday its Q3 revenue surged 156.5 percent on-year to 6.5 trillion won ($4.55 billion), while operating profit jumped 79.5 percent to 856.4 billion won ($600 million) — the highest level ever for a third quarter. A key driver was the full consolidation of Hanwha Ocean, which contributed 3 trillion won in sales, representing the single largest chunk of group revenue. The land systems division, responsible for the K9 self-propelled howitzer and multiple-launch rocket systems, followed with 2.1 trillion won, trailed by Hanwha Systems — owner of Philly Shipyard — at 807 billion won and the aerospace arm at 604 billion won. Most of the profit, however, came from land systems, which generated 573 billion won in operating profit, or roughly 27 percent of the companywide total. Hanwha Ocean logged 290 billion won. Hanwha Systems saw a temporary earnings dip due to costs tied to its Philly Shipyard acquisition, while the aerospace segment swung back to profit after its Risk and Revenue Sharing Program (RSP) — a joint development mechanism where partners share profit and losses by equity ratio — turned profitable. RSP projects are known to incur front-loaded costs, so the turnaround is viewed as evidence the aerospace unit is entering a more stable earnings phase. “The land-systems backlog now stands at 31 trillion won, or around 69 percent of total orders,” a Hanwha Aero official said, adding that earnings momentum is expected to extend through 2029 as defense expansion remains the primary growth engine. Hanwha Aero is also accelerating its European push. The company plans to begin construction on a new production base in southern Romania by year-end, with local manufacturing to start in 2027. Hanwha entered the Romanian market last July by signing a 1.38 trillion-won deal to supply 54 K9 howitzers and 36 K10 armored ammunition resupply vehicles. It plans to partner with Romanian defense company PRO OPTICA and Italy’s Iveco for the new plant, ultimately targeting Romania’s infantry fighting vehicle (IFV) market. Hanwha Aerospace rose 6.44 percent to close at 1,042,000 won. Hyundai Rotem delivers best results since founding Hyundai Rotem also posted its best-ever results since its establishment, buoyed by soaring global demand for armored vehicles and main battle tanks. From January to September, the company recorded cumulative revenue of 4.2 trillion won and operating profit of 738 billion won — up 44 percent and 150 percent, respectively, from a year earlier. Even on a Q3-only basis, revenue rose 48 percent year-on-year, while operating profit more than doubled, up 102 percent. Like Hanwha Aero, Rotem’s standout performance came from its defense division. Cumulative new defense orders soared from 438 billion won in the first three quarters of last year to 9.14 trillion won this year — an explosive 1,988 percent jump — driven by skyrocketing demand for K2 main battle tanks across NATO states such as Poland and Romania, along with new export contracts for wheeled armored vehicles (WAVs) with Peru. Made-in-Korea armored assets have long been recognized for strong fundamentals, backed by Korea’s advanced manufacturing capabilities and its operational credibility as a nation effectively still at war. Sales gained renewed momentum after Russia’s invasion of Ukraine. Bordering NATO states, particularly Poland and Romania, began rushing to place large-scale tank orders amid mounting security concerns. Korean producers gained an edge with faster delivery timelines and high-performance systems, rivaling established European defense giants Rheinmetall and Krauss-Maffei Wegmann (KMW). Riding on its strengthened global position, Hyundai Rotem plans to continue research into hypersonic vehicles and dual-mode ramjet propulsion systems, aiming to develop maneuverable hypersonic missiles — a technology critical for penetrating missile defense systems and striking high-value targets. The company is also working to integrate robotics and drone technologies from Hyundai Motor Group to expand into next-generation autonomous and unmanned defense platforms. Hyundai Rotem shares surged 6.07 percent to 244,500 won. Eugene Investment & Securities analyst Yang Seung-yoon remains bullish on Korea’s broader defense sector, which also includes Korea Aerospace Industries and LIG Nex1, known for missile and radar capabilities. “NATO’s upward revision of defense spending targets and the EU’s exemption of defense-related debt limits could create meaningful opportunities,” Yang said. 2025-11-03 11:43:25