LS SECURITIES analyzed on the 17th that domestic defense corporations will benefit the most in the short term as Europe rearmament progresses.
Research Institute Choi Jeong-hwan noted, "Contrary to the prediction that the momentum for stock price increases would disappear after the end of the Russia-Ukraine war, the current market is focusing on Europe’s rearmament and the related benefits for domestic corporations, regardless of the Russia-Ukraine conflict."
However, it seems unlikely that Europe’s rearmament will be achieved quickly within the European Union (EU) itself. There are industrial aspects due to insufficient manufacturing capabilities, but it will take a considerably long time to reach a political consensus due to differences in positions among Western Europe and other European regions within the EU.
Research Institute Choi assessed that in the future, "The global defense industry market is likely to be restructured with key market participants from South Korea, Eastern Europe, Western Europe, the United States, Israel, China, Russia, and the Third World (India, Turkey) targeting markets in Eastern Europe, Northern Europe, the Middle East, and the South China Sea."
Considering the current global geopolitical situation and industrial capabilities, it is expected that South Korea's defense industries will see the greatest benefits in the short term.
Research Institute Choi analyzed, "Hanwha Aerospace and Hyundai Rotem are negotiating local production of K9 self-propelled howitzers, K2 tanks, and K239 Chunmoo in Poland and Romania, and in the future, technology transfer and local production will become increasingly important for defense exports."