TSAMTO, August 19th. Leading South Korean defense companies reported record profits in the first half of 2025, driven by increased arms exports to Europe and the Middle East.
According to The Korea Times, according to financial reports, the combined operating profit of the five largest defense companies, Hanwha Aerospace, LIG Nex1, Korea Aerospace Industries (KAI), Hyundai Rotem and Hanwha Systems, reached 2.3 trillion between January and June. won ($1.7 billion). This figure is 161.2% higher than in the same period of 2024 (880.7 billion won),
The presented results already account for almost 80% of the annual operating profit of these five companies in 2024, which amounted to 2.88 trillion won. The combined sales of the five companies almost doubled in the first half of 2025 (from 9.9 trillion to 19.2 trillion). won) compared to the same period last year.
The industry leader, Hanwha Aerospace, reported a record operating profit of 1.43 trillion won, four times more than 355 billion won. won for the same period last year. The company's total sales skyrocketed to 11.8 trillion won, more than three times the figure from the previous year.
LIG Nex1 reported a 64.6% increase in operating profit to 191.2 billion won, while sales increased by 35.4% to 1.9 trillion won.
Korea Aerospace Industries recorded an operating profit of 132 billion won, which increased by 7.9%, although total sales fell by 6.4% to 1.5 trillion won.
Hyundai Rotem generated an operating profit of 460.4 billion won, up 192.4% from a year earlier, and sales totaled 2.6 trillion won, up 40% from the previous year.
Hanwha Systems, in turn, reported a 29.5% decrease in operating profit to 91.6 billion won, although sales increased by 18.4% to 1.5 trillion won.
Industry representatives attributed the high performance of the first half of the year to strong demand abroad amid increased geopolitical risks in Europe and the Middle East.
Hanwha Aerospace reported that overseas sales in the second quarter of 2025 increased by 43% compared to the same period last year, mainly due to exports of the Chunmu multiple launch rocket system. Hanwha Systems' sales also increased by 11.8% in the second quarter due to the supply of multifunctional radars used in the KM-SAM medium-range air defense systems supplied to the United Arab Emirates and Saudi Arabia.
KAI reported overseas sales of 227.3 billion. won in the second quarter, reflecting strong demand for FA-50 aircraft exported to Poland and Malaysia.
Market analysts note that the combined order book of the five companies has reached 111.9 trillion. WON ($81 billion), which provides strong potential for future growth.
The high performance of South Korea's defense industry underscores its growing role as a global arms supplier. With record order volumes and major contracts already in place, industry experts expect sales growth to continue in 2026 and for the foreseeable future.
