Shipbuilding and defense stocks, widely regarded as beneficiaries of the Iran conflict, are rising in unison as geopolitical tensions from Iran intensify. The KOSPI and KOSDAQ are trading moderately higher as markets remain wary of the possibility of a wider conflict.
According to the Korea Exchange on Thursday, as of 9:51 a.m., STX Engine (077970.KS) was trading at 45,000 won, up 2.27% from the previous day. Oriental Precision & Engineering (014940.KS) was trading at 8,080 won, up 11.60%.
Defense stocks also posted gains at the same time. Hanwha Aerospace (012450.KS) rose 0.56% to 1.431 million won, Hyundai Rotem (064350.KS) gained 1.85%, LIG Nex1 added 3.42%, and Hanwha Systems (272210.KS) edged up 0.15%.
The trend is interpreted as a direct impact of military tensions surrounding the Strait of Hormuz. As Iran maintains its position to preserve passage rights through the strait until a negotiated settlement is reached, risks to energy transport and maritime logistics have come into focus.
Market analysts say that if tensions in the Strait of Hormuz persist, maritime shipping risks and energy price volatility could expand, sustaining short-term upside expectations for the shipbuilding and defense sectors. However, volatility is likely to increase depending on whether negotiations resume.
The trigger for the heightened military tensions was a U.S. operation to seize an Iranian ship. On Wednesday (local time), two days before the end of the "two-week ceasefire" between the United States and Iran, U.S. forces reportedly fired naval guns at an Iranian cargo ship near the Strait of Hormuz before seizing it.
President Donald Trump said via his social media platform Truth Social that "the Iranian cargo ship 'Tusca,' approximately 900 feet (about 275 meters) long, attempted to breach a naval blockade but was stopped," adding that "the engine room was struck after the ship failed to comply with orders to halt." He added, "U.S. Marines have now secured the vessel and are inspecting the interior."
Iran immediately pushed back and moved to retaliate. A semi-official media outlet claimed, "The Iranian military struck a U.S. warship with drones."
Meanwhile, at the same time, the KOSPI was at 6,227.48, up 35.56 points (0.57%) from the previous day, extending its modest gains. The KOSDAQ was also trading at 1,180.37, up 10.33 points (0.88%), as investors searched for direction.
