Military tensions between the United States and Iran have intensified, leading to a surge in defense stocks. Hanwha Aerospace, which had seen a decline in investor sentiment following a recent explosion at its Daejeon facility, has experienced two consecutive days of gains amid expectations for increased defense demand.
As of 12:49 p.m. on June 10, Hanwha Aerospace shares were trading at 1,025,000 won, up 9,000 won (0.89%) from the previous trading day. This follows a 0.99% increase the day before, marking a continued upward trend.
The rise in defense stocks is attributed to escalating tensions in the Middle East. According to CNN, the Iranian Revolutionary Guard Corps (IRGC) announced via its Telegram channel that it had launched missiles and drones at U.S. targets in the region.
This action is reportedly a retaliatory measure following U.S. airstrikes in response to the downing of an Apache helicopter belonging to the U.S. Army, which was shot down by an Iranian drone while patrolling over the Strait of Hormuz.
President Donald Trump also indicated the possibility of further action, stating on his social media platform Truth Social that the U.S. would have to respond to the attack.
As geopolitical risks in the Middle East grow, expectations for benefits to the global defense industry are increasing, leading to a surge in buying activity for domestic defense stocks like Hanwha Aerospace.
However, uncertainties remain regarding the recent explosion at the Daejeon facility, which resulted in five fatalities and two injuries. Investigators are currently looking into the exact cause of the incident.
* This article has been translated by AI.
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