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Korea Herald
21-05-2025
- Business
- Korea Herald
[From the Scene] S. Korean defense firms make mark in Southeast Asia at LIMA 2025
Missile-maker LIG Nex1 and aircraft producer KAI draw attention from Southeast Asian countries with affordable, adaptable solutions By Hwang Joo-young and Joint Press Corps LANGKAWI, Malaysia — Southeast Asia's largest defense exhibition opened Tuesday on the island of Langkawi, with South Korea emerging as a dominant presence amid growing regional demand for cost-effective, adaptable, and combat-proven weapons systems. The Langkawi International Maritime and Aerospace Exhibition, or LIMA 2025, kicked off its five-day run with some 510 exhibitors from 25 countries. Among them, South Korean defense firms Korea Aerospace Industries and LIG Nex1 drew particular attention for their growing regional presence and offerings that closely align with local defense needs. On the opening day, Malaysian Prime Minister Anwar Ibrahim visited the KAI booth, where CEO Kang Goo-young briefed him on the FA-50M's active electronically scanned array radar, aerial refueling capabilities and delivery timeline. 'You'll be able to see the FA-50M flying over Langkawi at the next LIMA,' Kang told the prime minister. In 2023, Malaysia signed a contract to procure 18 FA-50M jets, marking the country's first-ever purchase of Korean-made fighter aircraft. The jets are scheduled for delivery in 2026. KAI, in particular, is rapidly expanding its footprint in Southeast Asia — a trend that is also drawing interest from global defense partners. European missile manufacturer MBDA mounted its Brimstone air-to-ground missile on a mock-up of the FA-50, signaling its intent to align with Korea's growing platforms. 'Markets like Indonesia and Malaysia, where KAI is already active, are strategically attractive entry points for us,' said Savio Babu, MBDA's airborne technical executive. Babu also cited Indonesia's role in the KF-21 program and Malaysia's potential follow-up FA-50 order as key reasons MBDA is promoting compatibility with KAI aircraft — aiming to appeal to both current and prospective users. LIG Nex1, meanwhile, attracted attention with its naval surface-to-air missile system K-SAAM, branded as Haegung in Korea. The company, which recently opened a regional office in Kuala Lumpur, is actively pursuing opportunities across Southeast Asia, where maritime security needs are on the rise. Designed to defend warships from incoming threats, Haegung is currently under review by the Malaysian Navy. 'Haegung is gaining traction because of our strengths in delivery timelines, technology transfer, and long-term maintenance support,' an LIG Nex1 official said. High-ranking officers from the Vietnamese Navy also visited the booth and inquired about integrating Haegung into smaller vessels. A formal presentation on the company's full shipborne combat system was requested, the official added. 'There's a view in the industry that once a country starts showing serious interest in a system, its neighbors tend to take notice — and often follow,' the LIG Nex1 official said. 'In such cases, if a South Korean defense firm gains a foothold in one country, that success could serve as a bridgehead into the broader Southeast Asian market.' Meanwhile, major US players such as Lockheed Martin and Boeing were notably absent from this year's exhibition, which some observers interpret as a reflection of shifting dynamics in the region's defense procurement priorities. Another industry official at the event, speaking on condition of anonymity, said the absence of these traditional defense giants underscores how tightening budgets and growing operational demands are pushing many buyers in the region to seek affordable, field-tested solutions with flexible support structures — rather than high-end, legacy systems. 'You can see countries like Iran, China and Russia also marketing aggressively here,' the source added. 'Southeast Asian countries are less concerned with geopolitical blocs and more focused on securing the right capabilities on the right terms.' flylikekite@
Korea Herald
17-04-2025
- Business
- Korea Herald
Amid global tensions, Korea's arms exports hit all-time high
'Big 4' — Hanwha Aerospace, Hyundai Rotem, LIG Nex1, KAI — secure massive orders, eye expansion in Europe, Middle East, Southeast Asia Korea's defense exports surpassed $4 billion for the first time last year as the top industry leaders, namely Hanwha Aerospace, Hyundai Rotem, LIG Nex1 and Korea Aerospace Industries, enjoyed record-setting annual performances while continuing to expand their presence on the global stage amid ongoing geopolitical uncertainties worldwide. According to data from the Korea International Trade Association, the country's weapons exports totaled $4.05 billion last year, roughly a 10-fold increase from 2015. The biggest importer of Korean defense systems was Poland, which purchased Korea-made weapons worth about $2.51 billion, more than four times what it bought in 2023. The most-exported items were from Hanwha Aerospace, which shipped 212 units of its K9 self-propelled howitzers, and Hyundai Rotem, selling 134 units of the K2 battle tank. Middle Eastern countries occupied most of the top five spots among importers of Korean weapons as regional tensions escalated due to the conflicts involving Israel, Hamas, and the Houthis in Yemen. Saudi Arabia ranked second with $530 million worth of defense imports. The United Arab Emirates and Turkey placed fourth and fifth, respectively, with $145 million and $113 million in purchases of Korean-made weapons. The United States was the third-biggest importer of Korean weapons at $219 million. Since the Russia-Ukraine war began in 2022, Korean defense firms have made the most of their business opportunities, continuously securing large-scale orders. With backlogs of orders at Hanwha Aerospace, Hyundai Rotem, LIG Nex1 and KAI exceeding 80 trillion won ($5.64 billion), they appear poised to keep the momentum going. According to defense industry sources, Hanwha Aerospace is expected to soon close a deal with Vietnam to export the K9 self-propelled howitzers, a contract expected to be worth 1 trillion won. Hyundai Rotem is also reportedly nearing the final stage of inking a second agreement with Poland for K2 battle tanks that could be worth over 7 trillion won. LIG Nex1 has supposedly been in talks with Malaysia to export its surface-to-air missile system Cheongung. KAI is looking to export its KF-21 fighter jet to the Middle East. As the Korean defense companies continue racking up orders and looking to expand their list of clients worldwide, J.P. Morgan released a report on the four major players -- Hanwha Aerospace, Hyundai Rotem, LIG Nex1 and KAI -- last month, increasing their stock price targets by an average of 28 percent while pointing out that there is 'plenty of room to go' for their values to rise. The report surprised investors, industry officials and analysts as it set the target prices of the four defense companies higher than the domestic market consensus. J.P. Morgan adjusted the target stock prices of Hanwha Aerospace, Hyundai Rotem, LIG Nex1 and KAI to 950,000 won, 90,000 won, 370,000 won and 120,000 won, respectively. As of noon Thursday, about 40 days after the report was released, none of the stocks had hit the projections. J.P. Morgan noted that it estimates an annual new order market of 19 trillion won -- 14 trillion won from Europe and 5 trillion won from the Middle East -- for Korean land weapons systems companies, adding that it is too early to discuss order peak concerns. 'Korean-made weapons remain one of the top choices for Eastern European countries facing national security issues,' said Lee Tae-hwan, an analyst at Daishin Securities. 'Discussions about ordering conventional weapons will gain momentum. The K9 self-propelled howitzers and K2 tanks are excellent candidates with strong potential for scoring additional export deals in Eastern Europe.'
Korea Herald
14-02-2025
- Business
- Korea Herald
Korean defense firms to unlock Middle East market potential at IDEX 2025
Korean defense companies are preparing to tap deeper into the market and attract more clients at the largest defense industry exhibition in the Middle East and Africa, taking place next week in the United Arab Emirates. From Feb. 17 to 21 in Abu Dhabi, the International Defence Exhibition & Conference 2025 will feature Korean defense giants such as Hanwha Aerospace, Hyundai Rotem and LIG Nex1, alongside 1,350 companies from 65 countries. Korean companies will showcase their cutting-edge products in a region that includes seven of the top 20 global military asset importers from 2019-2023. Hanwha Aerospace, a leading defense solutions provider covering land, sea and air, will set up its largest booth ever at IDEX in partnership with its radar-making unit, Hanwha Systems. The booth will exhibit Korea's homegrown long-range surface-to-air missile, designed to intercept missiles at high altitudes of over 40 kilometers and developed in collaboration with LIG Nex1, for the first time at an overseas defense exhibition. Hanwha will also present land-based air and missile defense systems, designed for low-altitude defense, typically targeting threats within 10-20 kilometers. The firm will display its expanding range of air defense systems, designed to meet the growing global demand as countering missile and drone attacks becomes increasingly crucial in modern warfare. The K9 self-propelled howitzer, a flagship product of Hanwha Aerospace, will also be showcased at the exhibition. Already adopted by nine countries, including Turkey and Egypt, the K9 is poised to expand its presence in additional markets, with its powerful capabilities and high mobility. 'We will showcase our cutting-edge multi-layer air defense solutions, the K9 equipped with a Korea-made engine and more products tailored to the needs of Middle Eastern countries,' said a Hanwha Aerospace official. 'We hope our response to regional security demands will contribute to peace and economic growth in the region.' LIG Nex1 will also set up a booth to display its medium-range surface-to-air missile, Cheongung-II, dubbed the "Korean Patriot." Several countries in the Middle East have already adopted this system, including the UAE, Saudi Arabia and Iraq, validating its effectiveness in the region's unique security environment and climate. With a focus on future warfare, LIG Nex1's booth will feature uncrewed defense systems, including uncrewed surface vessels and guided weapons designed to be deployed on various platforms. Along with the companies, Seok Jong-gun, head of South Korea's Defense Acquisition Program Administration, and other DAPA officials are scheduled to visit IDEX. The group aims to promote Korean products and explore future collaboration opportunities with defense authorities attending the event.
