HD Hyundai Heavy Industries posts best results since 2012, expands push into Middle East HD Hyundai Heavy Industries, benefiting from a shipbuilding upcycle, said it has returned to annual operating profit above 2 trillion won for the first time in 13 years, helped by an order strategy focused on high-value vessels. The company said it plans to widen its global footprint this year, extending moves in the United States and India to the Middle East to strengthen its position in shipbuilding and offshore markets. In a regulatory filing on Sunday, HD Hyundai Heavy Industries reported consolidated 2025 revenue of 17.5806 trillion won, up 21.4% from a year earlier. Operating profit surged 188.9% to 2.0375 trillion won. It was the first time operating profit exceeded 2 trillion won since 2012, during the industry’s peak boom. The company attributed the improvement to a focus on high-value ship types, including liquefied natural gas carriers, ultra-large container ships and eco-friendly, high-efficiency vessels. In the fourth quarter, LNG carriers accounted for 48.4% of revenue, down slightly from the previous quarter, while the share of liquefied petroleum gas and ammonia carriers (VLAC) rose to 32.2%, offsetting the decline. More than 80% of total merchant-ship revenue came from high-value gas carriers, it said. Building on the results, HD Hyundai Heavy Industries said it will broaden management activity this year to the Middle East, following efforts to expand overseas operations through cooperation on U.S. maintenance, repair and overhaul work and plans to establish a shipyard in India. It said it is also moving ahead with a plan to enter the Middle East directly by setting up a joint-venture shipyard. The company’s push reflects expectations of continued large orders from Middle Eastern countries amid energy transition and rising defense demand, the report said. The region is seeing growing demand for both LNG-related vessels and offshore plants. HD Hyundai Heavy Industries said it will seek orders by leveraging its experience and technical competitiveness in building high-value ships. It has also joined the Middle East’s largest defense exhibition in Saudi Arabia and has entered the competition for Saudi Arabia’s next frigate program, the report said. A key pillar of the Middle East strategy is the IMI (International Maritime Industries) joint-venture shipyard being built by HD Korea Shipbuilding & Offshore Engineering, HD Hyundai’s intermediate shipbuilding holding company, with Saudi partners near Jubail in the King Salman Maritime Industrial Complex. IMI is targeting completion this year. “HD Hyundai Heavy Industries is expanding its portfolio beyond merchant ships into special-purpose vessels and defense,” an industry official said. “Once IMI begins full operations in the second half of this year, it will have a base to respond directly to demand for high-value ships and offshore plants in the Middle East, bringing major change.”* This article has been translated by AI. 2026-02-09 18:03:40

Hyundai Motor Group Expands U.S. Presence as Rivals Cut EV Spending Global automakers are slowing electric vehicle investment and trimming production in North America, but Hyundai Motor Group is moving in the opposite direction, expanding investment and leaning more heavily on hybrids. Industry watchers say the strategy is helping Hyundai and Kia stay competitive as the pace of the EV transition cools. According to the auto industry on Monday, Stellantis, which has operations in Europe and the United States, has entered a restructuring phase as it revises its EV strategy. It has begun running restructuring programs, including large-scale voluntary retirement, in major markets such as South Korea. The shift follows losses of 22.2 billion euros (about 38.4 trillion won) tied to its EV business reset. In October, the U.S. government tightened requirements for EV tax credits under the Inflation Reduction Act, prompting automakers to slow EV rollouts and focus more on profitability. General Motors last month reduced a Canadian plant from three shifts to two and cut about 500 jobs. Ford is estimated to have absorbed losses of US$19.5 billion while adjusting its EV investment plans. Hyundai Motor Group, meanwhile, has continued to expand in North America, boosting sales and investment as rivals pull back. The group has been increasing hybrid output to raise market share. At its 2025 CEO Investor Day, Hyundai said it would expand its hybrid lineup from 14 models to at least 18. Kia lowered its 2030 target for EVs as a share of sales to 30% from 38% and said it would raise hybrids to 26% from 20%. The approach has supported results. Last year, Hyundai Motor Group sold a record 1,836,172 vehicles in the United States, up 7.5% from a year earlier. Its U.S. market share rose to 11.3% from 10.8%. In January, combined sales by Hyundai (including Genesis) and Kia rose 7.7% from the same month a year earlier to 125,296 vehicles, helped by strong demand for hybrid models such as the Palisade. Hyundai plans to keep increasing investment to match sales growth. By 2028, it plans to invest US$26 billion in the United States and expand capacity at its Georgia Metaplant (HMGMA) to 500,000 vehicles a year from 300,000. A Hyundai-LG Energy Solution joint venture battery cell plant is also targeting completion and start of operations in the first half of this year. As Hyundai Motor Group increases local production, the industry expects South Korean parts suppliers to step up expansion of their North American manufacturing bases as well. A Hyundai official said expanding hybrids and local production in line with U.S. sales trends has strengthened the group’s competitiveness in North America.* This article has been translated by AI. 2026-02-09 18:03:26

South Korean Arms Makers Showcase Advanced Weapons at Saudi Defense Expo South Korea’s defense industry, riding a boom, is taking its pitch to the Middle East’s biggest market as companies compete for Saudi Arabia’s oil-funded procurement. Major firms are showcasing advanced land, sea and air systems alongside global rivals.  Industry officials said Monday that leading South Korean defense companies joined the 2026 World Defense Show, which opened Sunday (local time) in Riyadh.  Hanwha’s three defense affiliates, Hyundai Rotem, LIG Nex1 and Korea Aerospace Industries, or KAI, set up near the entrance of the third exhibition hall, close to pavilions for host Saudi Arabia as well as China and Russia.  Hanwha Aerospace, Hanwha Systems and Hanwha Ocean built a combined 677-square-meter booth, their largest yet, to highlight future integrated weapons systems using artificial intelligence and network-centric battlefield solutions.  KAI said it will focus marketing on exporting the KF-21, which is scheduled to be fielded this year, while also displaying the FA-50, the Light Armed Helicopter (LAH), a nano synthetic aperture radar (SAR) satellite and unmanned aircraft. The KF-21 area is being run as a joint exhibit with companies that took part in developing the aircraft under a “Team Korea” concept.  Turki bin Bandar bin Abdulaziz Al Saud, commander of the Saudi air force, visited KAI’s Sacheon headquarters on Jan. 28, watched a KF-21 demonstration flight and toured mass-production facilities, the company said.  LIG Nex1, which entered the Middle East market with a 2024 export of the Cheongung-II to Saudi Arabia, is promoting a layered air-defense package. It includes Cheongung, the long-range surface-to-air guided weapon (L-SAM), the long-range artillery interception system (LAMD) and the Shingung (CHIRON), aimed at countering missile, drone and aircraft threats.  Hyundai Rotem said it will emphasize ground systems and future-warfare technologies, including maneuver weapons, manned-unmanned teaming (MUM-T) and hydrogen mobility, as it seeks to expand in the Middle East.  The South Korean government is also backing the push. Defense Minister Ahn met in Riyadh with Saudi Defense Minister Khalid bin Salman Al Saud, proposing forward-looking cooperation in defense and the defense industry and inviting Khalid to visit South Korea within the year.  Saudi Arabia allocated $78 billion for defense spending last year and is pursuing measures to promote its defense industry, including attracting domestic and foreign investment, according to the General Authority for Military Industries (GAMI). 2026-02-09 18:03:00

Bithumb scandal sparks deep skepticism over Korea's crypto exchange systems SEOUL, Feb 09 (AJP) - A “fat finger” blunder at Bithumb, South Korea’s second-largest cryptocurrency exchange, has become a windfall for a few and a nightmare for many, involving more than $40 billion in erroneous transactions and raising fresh concerns over the safety of crypto trading in Korea. At around 7 p.m. KST last Friday, a staff member attempted to distribute 620,000 won in prize money but mistakenly transferred 620,000 won worth of Bitcoin instead—each unit valued at about 100 million won at the time. At the time of the incident, Bithumb reportedly held about 40,000 Bitcoins. Yet the erroneous payout amounted to nearly 15 times that figure. The exchange said it had recovered more than 99 percent of the wrongly distributed assets, but about 125 Bitcoins—worth roughly 13 billion won—remain unreturned. As volumes several dozen times larger than actual market capitalization were deposited into accounts, some investors panicked. This triggered a flash crash, sending Bitcoin prices plunging from around 100 million won to 80 million won and causing significant losses for many traders. Korean investors are familiar with such “fat finger” incidents. In 2018, Samsung Securities mistakenly issued “ghost stocks” worth 112 trillion won after entering share quantities instead of cash dividends. The Bithumb case has revived memories of that episode. Weak safeguards despite massive volumes The scandal has reignited criticism over the lack of preventive mechanisms in South Korea’s crypto market, which ranks among the world’s largest by trading volume. Although the Act on the Protection of Virtual Asset Users has been in force since July 2024, its provisions are seen as falling short of safeguards in major overseas markets. The incident stemmed from the absence of internal systems to block abnormal transactions at the platform level. Once the erroneous data was entered, it translated directly into actual transfers. In Japan, a 2025 amendment to the Payment Services Act allows withdrawals to be immediately blocked when irregular activity is detected, supported by approval processes using cold wallets. While Korean rules require at least 80 percent of assets to be stored in cold wallets, they impose few concrete restrictions on withdrawal procedures, complicating recovery efforts. In the European Union, detailed ledger and disclosure requirements allow regulators to access full records of balances, transaction purposes and histories, making it difficult for exchanges to record volumes far exceeding their holdings. Fears of manipulation mount Some experts view the incident as evidence that the risks of “naked short selling” in crypto markets have been underestimated. “During the Samsung Securities fat finger incident, there were overwhelming suspicions that the firm traded non-existent shares to intentionally manipulate stock prices,” said Seok Byoung-hoon, an economics professor at Ewha Womans University. “I believe this case will be remembered as a representative example showing that naked short selling is indeed possible in the crypto world.” Korean investors are particularly sensitive to such practices. In May 2024, the Financial Supervisory Service identified about 150 billion won in illegal short selling by seven investment banks, including HSBC Hong Kong and BNP Paribas. The findings led to a temporary ban on short selling, which was lifted in March 2025. FSS Governor Lee Chan-jin said Monday that authorities would respond sternly, without specifying details. “The essence of this issue is that erroneous virtual data actually led to real-world transactions,” he said. 2026-02-09 17:59:38

Seoul weighs heavier fines for antitrust offenses SEOUL, February 09 (AJP) - South Korea is reviewing a major overhaul of its antitrust penalty system, moving toward fines linked to overall corporate revenue as part of a broader effort to curb repeated violations by large conglomerates. The Korea Fair Trade Commission (FTC) said Monday it has commissioned an external study to redesign its sanctions framework for unfair trade practices, laying the groundwork for tougher legislation later this year. At the center of the reform is a proposal to calculate fines based on a company’s total sales, rather than limiting them to revenue generated in the specific market tied to a violation. Under the new approach, larger firms would automatically face heavier penalties—aimed at preventing major conglomerates, or chaebol, from treating fines as a routine business expense. “Companies often find that the profits gained from violations exceed the penalties imposed,” said Sun Jung-gyu, director-general of the FTC’s Competition Policy Bureau. “The goal is to make collusion and unfair practices economically unviable.” He added that President Lee Jae Myung has repeatedly criticized Korea’s cartel fines as being too lenient by international standards. A System Favoring Large Firms Currently, the FTC calculates penalties based on “related turnover,” or sales linked directly to the offending activity. In practice, this has produced sharply uneven outcomes. A 2020 study by the Korea Institute of Public Finance found that between 2011 and 2017, fines imposed on large corporations averaged just 0.17 percent of their total sales. By contrast, midsize firms paid 0.47 percent, medium enterprises 1.45 percent, and small businesses 3.33 percent. The smallest firms—often penalized for minor violations—shouldered fines equal to more than 22 percent of revenue. Officials argue that this imbalance weakens deterrence and effectively shields dominant players. Learning from Europe The reform draws inspiration from European competition policy, which bases fines on company-wide turnover. In 2024, the European Commission fined Apple €1.84 billion for abusing its dominant position in music streaming. Only €40 million was the base penalty, while the remainder reflected Apple’s global revenue and market power. By comparison, Korean penalties for similar abuses have rarely exceeded a few hundred million won—negligible for firms with trillions of won in annual sales. FTC Chairperson Joo Byung-ki said in January that Korea would follow European and German models by factoring company size into sanctions through new research and a dedicated task force. Introducing a Minimum Floor Regulators are also considering minimum fine thresholds to prevent token penalties. The new system could impose either a fixed minimum amount or a baseline percentage of turnover, ensuring that no major violation results in nominal punishment. Under current rules, “very serious” abuse of market dominance carries a minimum fine of 3.5 percent of sales during the violation period. Officials are reviewing plans to raise that floor by the end of February. The FTC is also reassessing fixed-amount penalties—typically ranging from 500 million won to 4 billion won—used when violations cannot be clearly tied to specific sales. “These static limits fail to reflect corporate gains or social harm,” an FTC official said. “A revised system would allow stronger sanctions even when market impact is hard to measure.” Legislative Push and Corporate Resistance To institutionalize the changes, the FTC plans to submit amendments to the Fair Trade Act in the first half of the year. The bill would raise both maximum and flat-rate penalties, expanding regulatory discretion. Business groups are already pushing back, warning that heavier fines could dampen investment and innovation amid slowing exports and economic uncertainty. “Firms will argue this hurts business activity, while regulators will stress deterrence,” said Professor Lee Hwang of Korea University Law School. “The challenge is balancing discipline with economic dynamism.” Lee also emphasized the legal distinction between administrative surcharges and criminal penalties. “This reform concerns administrative sanctions, not criminal punishment,” he said. “It is about deterrence, not criminalization.” The FTC’s policy blueprint, expected later this year, is likely to present multiple models for scaling fines. Officials say the intent is not to penalize corporate success but to ensure accountability proportional to financial capacity. Supporters argue that scale-sensitive fines will strengthen market discipline and public trust noting that Japan and Australia also employ similar systems. Critics, however, warn that aggressive enforcement could trigger prolonged legal battles and encourage firms to shift profits or operations offshore. Some also fear that minor compliance lapses could be punished too harshly. The reform comes amid rising public frustration over price-fixing scandals and collusion among major conglomerates, making competition policy a politically sensitive issue. For President Lee’s administration, tightening corporate accountability aligns with its pledge to create a “level playing field” for small and medium-sized enterprises. Tensions with business groups have recently intensified. The government sharply criticized the Korea Chamber of Commerce and Industry after it issued a statement claiming wealthy Koreans were fleeing high inheritance taxes. Lee publicly condemned the claim as “fake news,” prompting an official apology from the group, led by Chey Tae-won, chairman of SK Group. The FTC initiative represents one of the most ambitious regulatory shifts since Korea strengthened its competition laws in the late 1980s. If enacted, revenue-based fines would significantly reshape the relationship between the state and big business, marking a decisive move toward tougher enforcement. 2026-02-09 17:52:58

Assured leadership in Japan and AI bet refuel Asian markets SEOUL, February 09 (AJP) - Reinforced political leadership in Japan and renewed optimism over artificial intelligence helped refuel Asian equities on Monday, reversing much of last week’s sharp selloff. Japan’s Nikkei 225 jumped after the ruling Liberal Democratic Party secured a landslide election victory, strengthening support for Prime Minister Sanae Takaichi and her “strong Japan” agenda. The Nikkei closed up 2.9 percent at 56,363.9, after briefly breaking above the 57,000 mark. The upbeat mood in Tokyo set the tone across the region, lifting Korean equities in a broad-based rebound. South Korea’s benchmark KOSPI surged 4.1 percent to 5,298.04, while the KOSPI 200 jumped 4.4 percent to 780.9, marking one of the strongest daily gains in recent months. The tech-heavy KOSDAQ also advanced sharply, rising 4.3 percent to 1,127.6. Buying was driven primarily by foreign and institutional investors. On the main board, overseas investors bought 441.5 billion won ($302 million), while institutions added 2.71 trillion won. Retail investors took profits, selling 3.30 trillion won. A similar pattern emerged on the KOSDAQ, where foreigners bought 162.8 billion won and institutions added 484.5 billion won, while individuals sold 605.9 billion won. Sector-wise, gains were led by electrical equipment, energy and semiconductor shares, as optimism returned to AI, power infrastructure and defense themes. HD Hyundai Electric jumped 10.8 percent to 931,000 won, standing out among power equipment names. Semiconductor heavyweights rallied after Jensen Huang, CEO of Nvidia, said artificial intelligence had entered a phase of generating tangible profits, helping revive global AI-related sentiment. Samsung Electronics climbed 4.9 percent to 166,400 won, while SK hynix advanced 5.7 percent to 887,000 won. Energy and defense names were also in demand. Hanwha Solutions surged 13.6 percent to 47,700 won, while Doosan Enerbility rose 7.2 percent to 95,400 won. Hyundai Motor gained 2.3 percent to 478,000 won. Hanwha Aerospace added 1.02 percent to 1,193,000 won after reporting record results. The company posted 2025 revenue of 26.61 trillion won and operating profit of 3.03 trillion won, up 137 percent and 75 percent year on year, respectively, marking its third consecutive year of record earnings. Growth was driven by its land defense and aerospace businesses, as well as the full-year consolidation of Hanwha Ocean. Among a handful of losers, Sampyo Cement slid 14.2 percent to 16,860 won, while EM&I plunged 21 percent to 1,084 won and Koiz fell 16.6 percent to 3,720 won. In currency trading, the won strengthened modestly, closing at 1,460.6 per dollar, up 0.3 percent from the previous session, as improved risk sentiment supported Asian currencies. Elsewhere in the region, China’s Shanghai Composite Index rose 1.4 percent to 4,123.1, extending gains alongside the broader Asian rally. 2026-02-09 17:52:25

Jeju Air Returns to Profit After Five Quarters, Citing More Next-Gen Jets Jeju Air returned to an operating profit for the first time in five quarters. The airline said Monday it posted fourth-quarter 2025 revenue of 474.6 billion won and operating profit of 18.6 billion won. Revenue rose 5.4% from a year earlier, and operating results swung to a profit. For all of 2025, revenue fell 18.4% from the previous year to 1.5799 trillion won. The company reported an operating loss of 110.9 billion won. Jeju Air attributed the fourth-quarter improvement to a larger share of next-generation aircraft. In the fourth quarter, it added two purchased Boeing 737-8 jets and returned one older aircraft, lowering the fleet’s average age. The shift helped cut fuel costs. Cumulative fuel expenses for the first through third quarters of 2025 were about 19% lower than in the same period of 2024, the company said. Jeju Air said it will focus this year on strengthening fundamentals. It plans to introduce seven next-generation aircraft, continue reducing older planes, and sell assets to manage liquidity and financial ratios. The airline expects solid results to continue in the first quarter. According to the Transport Ministry’s aviation information portal, Jeju Air carried about 1.176 million passengers in January, up 33.5% from about 881,000 a year earlier and 2.6% higher than January 2024’s roughly 1.146 million. A Jeju Air official said the company is centering its strategy on disciplined management to respond to growing uncertainty, including wider swings in oil prices and exchange rates, a reshaping aviation market and intensifying competition. The official said Jeju Air will work to improve operational stability and efficiency to build a sustainable profit structure and boost performance.* This article has been translated by AI. 2026-02-09 17:51:33

South Korea inks fighter jet maintenance deal with Philippines SEOUL, February 9 (AJP) - South Korea has signed a deal with the Philippines to provide support and maintenance services for fighter jets, Korea Aerospace Industries (KAI) said on Monday. Under the performance-based logistics (PBL) deal, worth about 101.4 billion Korean won (about US$70 million), which runs through 2028, KAI will provide maintenance and logistics support for its FA-50 fighter jets supplied to the Philippines. The three-year deal comes as an initial one-year pilot contract worth 27 billion won in December 2024 delivered stable operating results. The latest deal also reflects long-term trust between the two countries after KAI's previous contracts in 2010 for the South Korean Air Force's T-50 trainer planes and Surion transport utility helicopters. The Philippines is a major client for the FA-50. The country first purchased a dozen FA-50PH aircraft in 2014 and acquired an additional 12 last year, building a close relationship with South Korea over about 10 years through follow-up services and logistics support. KAI said maintenance and support services are crucial because they can generate two to five times the revenue of initial aircraft sales, making them a key part of its growth strategy. Park Kyung-eun, a KAI executive, said, "We will work hard to provide optimized support and services tailored to each client and country to sustain exports of home-grown aircraft while expanding markets and maintaining competitiveness in the global aerospace and defense market." 2026-02-09 17:49:12

CJ CheilJedang Q4 profit drops 15 pct on weak domestic sales SEOUL, February 09 (AJP) - CJ CheilJedang said fourth-quarter operating profit fell about 15 percent from a year earlier as weak domestic consumption offset gains from its overseas food business. Operating profit for the three months ended December reached 181.3 billion won ($124 million), down from 219.9 billion won a year earlier, according to regulatory filings on Monday. Revenue rose about 1 percent to 4.54 trillion won. For the full year, CJ CheilJedang posted revenue of 17.75 trillion won, down less than 1 percent from 2024. Operating profit fell about 15 percent to 861.2 billion won as the bio division faced weak demand for high-margin products including tryptophan and specialty amino acids. On a consolidated basis including logistics unit CJ Logistics, the company reported annual revenue of 27.34 trillion won and operating profit of 1.23 trillion won. The food division reported annual revenue of 11.52 trillion won, up about 2 percent, with overseas sales reaching a record 5.92 trillion won and surpassing domestic sales for the first time. Fourth-quarter overseas food revenue hit an all-time high of 1.61 trillion won, up about 9 percent from a year earlier. Domestic food sales declined about 4 percent to 1.31 trillion won in the quarter, hurt by weak consumer spending and rising costs. The company said it would expand overseas sales of hit products including dumplings and rice products while improving efficiency. "We will accelerate global business expansion based on our only-one spirit and quickly secure innovative growth drivers for the future," a company official said. 2026-02-09 17:27:48

Korea targets $109B Middle East arms market amid aggressive budgeting SEOUL, February 09 (AJP) - With hundreds of billions of dollars pouring into Middle Eastern rearmament, South Korea’s defense industry is moving aggressively to claim its share—using a major arms fair in Riyadh as the gateway to a $109 billion market. The coordinated push is centered on the World Defense Show (WDS), running from Feb. 8 to 12 in the Saudi capital. The event is the region’s largest integrated defense exhibition and a key platform for securing long-term export contracts and industrial partnerships. This year’s show has drawn record participation from Korean companies, reflecting Seoul’s ambition to position itself as a major supplier in a region long dominated by U.S. and European arms makers. Major manufacturers, including Hanwha Aerospace, Hyundai Rotem, LIG Nex1 and Korea Aerospace Industries (KAI), are showcasing their systems. In particular, HD Hyundai Heavy Industries, LIG Nex1, KAI and EO System have jointly operated a combined booth, highlighting what industry officials describe as a “one-team” approach. The strong showing comes as defense budgets across the Middle East and Africa surge amid intensifying security threats and delayed modernization programs. According to Mordor Intelligence, the Middle East and Africa defense market is expected to reach $73.4 billion in 2026 and expand to about $109.4 billion by 2031, implying an average annual growth rate of 8.3 percent. The broader Middle East and North Africa region already accounts for roughly 27 percent of global major arms imports, according to the Stockholm International Peace Research Institute (SIPRI). Qatar, Saudi Arabia, Egypt and Kuwait rank among the world’s top 10 importers. Strategic analysts say recent regional tensions have reinforced these trends. The Israel–Hamas war, clashes between Israel and Hezbollah in Lebanon, and continued friction involving Iran and its proxies have all contributed to rising military spending. SIPRI estimates that Middle Eastern military expenditure reached $243 billion in 2024, up 15 percent from the previous year. Demand is growing for long-range strike systems, integrated air and missile defense, and naval security—areas in which Korean firms have already built export track records in Europe and Asia. Diversification and Localization For Korean exporters, a crucial shift is under way. Gulf and North African buyers, long dependent on U.S. and European suppliers, are increasingly diversifying their sources, pairing high-end Western platforms with more cost-effective alternatives. At the same time, localization and technology-transfer requirements are intensifying under national strategies such as Saudi Arabia’s Saudi Vision 2030, which aims to raise domestic defense procurement to 50 percent of total spending by the end of the decade. Korean firms, which have demonstrated co-production and technology-sharing models in Poland, are now promoting similar frameworks in the Middle East. A notable feature of this year’s WDS is the way Korean companies are presenting themselves as integrated solution providers rather than stand-alone exporters. Hanwha is using the exhibition to promote localization-ready systems aligned with Vision 2030, including a K9A1 self-propelled howitzer configured for desert operations and local production. “Discussions on exports to Saudi Arabia are under way, but it is difficult to say a deal will be finalized this year,” a Hanwha Aerospace official said. Hyundai Rotem is seeking to build on growing interest in its K2 main battle tank, following major contracts in Poland. Regional media reported that senior Iraqi defense officials visited the company’s booth and showed interest in the platform, with officials noting that political stabilization could lead to more concrete talks. KAI is also quietly cultivating expectations around potential exports of its KF-21 fighter, which will be introduced to partners such as the Philippines and the United Arab Emirates. Meanwhile, Hyundai WIA, making its WDS debut, is using the event to raise its profile as a key subsystem supplier. The company is the sole producer of gun barrels for the K9 howitzer and K2 tank. “Our defense-related revenue has more than doubled over the past three years,” a Hyundai WIA official said. Market Confidence The sector’s momentum is also reflected in financial markets. Korea’s benchmark KOSPI has recently surpassed the 5,000-point mark, signaling investor confidence in the country’s transition toward high-value manufacturing and defense industries. Hanwha Aerospace’s latest earnings have reinforced that trend. The company’s consolidated sales nearly doubled to 26.6 trillion won ($18.21 billion) in 2025, with operating profit jumping 75 percent year-on-year to 3.03 trillion won. Both revenue and operating profit reached all-time highs, while Hanwha Ocean also set record results for the third consecutive year since 2023. Combined sales of Hanwha Aerospace, Hyundai Rotem, LIG Nex1 and KAI exceeded 40 trillion won for the first time, reaching about 40.9 trillion won. Operating profit totaled roughly 5.2 trillion won, ushering in what analysts describe as a “5-trillion-won operating profit era.” The four companies’ combined order backlog is approaching 100 trillion won, effectively securing four to five years of production and signaling that the sector has entered a phase of structural growth rather than a short-term boom. For Korea’s defense exporters, the Middle East is no longer a peripheral market. It is fast becoming a central pillar in their global strategy—where scale, localization and long-term partnerships will determine who captures the next phase of the region’s rearmament boom. 2026-02-09 17:27:15