![Iran war geopolitical crisis escalates... Domestic defense companies' stock prices surge [U.S. airstrikes on Iran] - Seoul Economic Daily Finance News from South Korea](/_next/image?url=https%3A%2F%2Fwimg.sedaily.com%2Fnews%2Fcms%2F2026%2F03%2F03%2F9%2Fnews-p.v1.20260210.3e7e3e2930b34b5da8658177f26d8be6_P1.png&w=3840&q=75 "Korean Defense Stocks Surge Amid U.S.-Iran Military Conflict")
Korean defense stocks surged on Monday as geopolitical tensions escalated following the launch of U.S. military operations against Iran.
As of 8:38 a.m., LIG Nex1 (079550) was trading at 585,000 won, up 14.93% from the previous session, according to Nextrade. Hanwha Aerospace (012450) rose 11.30%, while Korea Aerospace Industries (047810) gained 7.05%.
Securities analysts see limited likelihood of a prolonged U.S.-Iran war but note the crisis could drive increased weapons imports by Middle Eastern nations. Many Korean defense companies export arms to the region.
The U.S. and Israel launched military strikes against Iran on Feb. 28 Korea time. The large-scale airstrikes killed several senior Iranian officials, including Supreme Leader Ayatollah Ali Khamenei. Iran has retaliated with ballistic missiles and drone attacks targeting U.S. military bases in the Middle East and Israel.
Hana Securities released a report Monday projecting that heightened geopolitical risks from the U.S.-Israel attacks on Iran will lead to increased defense spending among Middle Eastern nations over the medium to long term.
"It is difficult to predict when the war will end," said Chae Woon-saem, analyst at Hana Securities. "Even if the war ends early, weapons imports in the Middle East could increase over the medium to long term as countries prepare for possible follow-up attacks by Iran and regional uncertainty."