A 290-kilometer-range guided missile is launched from Hanwha Aerospace’s Chunmoo-based Homar-K system customized for Poland during a test firing at the Anheung test site operated by the Agency for Defense Development in Taean, South Chungcheong Province, on April 24, 2024. (Hanwha Aerospace)
A 290-kilometer-range guided missile is launched from Hanwha Aerospace’s Chunmoo-based Homar-K system customized for Poland during a test firing at the Anheung test site operated by the Agency for Defense Development in Taean, South Chungcheong Province, on April 24, 2024. (Hanwha Aerospace)

South Korea’s defense industry posted operating profit of more than 3 trillion won ($2.1 billion) for the first time in 2024, raising expectations that the figure could exceed 6 trillion won as early as 2026.

According to a report by the Korea Defense Industry Association on Sunday, operating profit at 83 domestic defense companies reached 3.6 trillion won in 2024, nearly doubling from the previous year. Defense-sector revenue also climbed 32.6 percent, from 20.2 trillion won to 26.8 trillion won.

Industry sources attribute the surge to Korean firms’ cost competitiveness, fast delivery and reliable quality, adding that operating profit could surpass 6 trillion won this year as large export contracts signed over the past two to three years are increasingly reflected in earnings.

Earlier this month, FnGuide projected combined operating profit at the defense “Big Four” — Hanwha Aerospace, Hyundai Rotem, Korea Aerospace Industries and LIG Nex1 — at 5.2 trillion won this year, nearly double their 2.6 trillion won profit in 2024, marking their entry into the 5 trillion-won range.

In recent years, Hanwha Aerospace has secured export contracts for its K9 self-propelled howitzers totaling about 12.6 trillion won in Poland and 2 trillion won in Egypt. Hyundai Rotem and KAI have signed supply deals with Poland worth 13.9 trillion won and 4.2 trillion won, respectively, for K2 battle tanks and FA-50 light fighter jets. LIG Nex1 has also finalized roughly 10.9 trillion won in export contracts for its Cheongung missile system in the Middle East.

Korea’s defense sector is expected to extend its expansion streak this year, supported by follow-on orders such as Poland’s third supply contract for the Chunmoo multiple rocket launcher system, signed in December 2025.

Against this backdrop, Korean defense companies are actively broadening their export footprint.

Hanwha Aerospace is pursuing K9 howitzer sales in the US and Saudi Arabia and bidding to supply Chunmoo systems under Norway’s $1.9 billion rocket procurement program. KAI is preparing to participate in the US Navy’s 10 trillion won Undergraduate Jet Training System program, while LIG Nex1 is seeking entry into the US market with its Bigung guided rocket. Hyundai Rotem is also targeting expansion into Iraq, Peru and Romania.


hyejin2@heraldcorp.com