Defense stocks surged early on Wednesday as tensions escalated in the Middle East following U.S. airstrikes on Iran.
As of 9:20 a.m. (Korean time), LIG Defense and Aerospace (D&A) was trading at 784,000 KRW (about 514 USD), up 59,000 KRW (about 39 USD) (8.14%) from the previous day’s close.
Korea Aerospace Industries also saw significant gains, with shares trading at 135,100 KRW (about 89 USD), a 5.87% increase from the previous session. Hanwha Systems and Hanwha Aerospace followed suit, posting gains of 5.20% and 2.95%, respectively.
The concurrent rise in defense stocks at the market’s opening is likely attributed to the U.S. airstrikes on Iran on June 9 (local time), which have heightened regional tensions.
U.S. Central Command (CENTCOM) justified the airstrikes as a defensive measure in response to the downing of a U.S. Army AH-64 Apache helicopter near the Strait of Hormuz the previous day. CENTCOM described it as a proportional response to Iran’s unwarranted aggression.
While the U.S. characterized the airstrikes as a warning message that wouldn’t impact negotiations, Iranian Foreign Minister Abbas Araghchi took to social media platform X, declaring that Iran would not remain passive. This exchange has further intensified the already volatile situation in the region.