Hanwha Aerospace, a major South Korean defense manufacturer, has found itself in the spotlight as surging geopolitical tensions in the Middle East send ripples through global financial markets and defense supply chains. On March 3, 2026, the company’s stock price soared to record highs, reflecting not only the immediate impact of conflict but also the longer-term promise of international defense cooperation and export growth.
At 9:24 a.m. KST on March 3, Hanwha Aerospace shares were trading at 1,474,000 KRW on the Korea Exchange (KRX), up a remarkable 23.34% from the previous day. The stock even touched a 52-week high of 1,479,000 KRW during the session, according to reporting by Ggilbo. This surge stood in stark contrast to the broader market, where major Korean blue chips like Samsung Electronics and SK Hynix saw their shares fall by over 2% in early trading, as noted by Hankyung. The divergence underscored a familiar pattern: defense stocks often rally during times of international crisis, while most other sectors falter.
The catalyst for this dramatic shift was a fresh escalation in the Middle East. Beginning on February 28, 2026, U.S. and Israeli forces launched coordinated missile, drone, and air strikes against Iran. The conflict intensified over the following days, with explosions reported across Tehran in the early hours of March 2, as relayed by Reuters and local Iranian media. The death of Iran’s Supreme Leader, Ayatollah Ali Khamenei, further inflamed the situation, prompting Iran to retaliate by targeting U.S. military bases in the region and striking liquefied natural gas (LNG) and oil facilities in Qatar and Saudi Arabia with drones.
The strategic Strait of Hormuz, through which about 20% of the world’s seaborne oil passes, became a flashpoint. Iran declared the vital waterway closed and threatened to destroy any ship attempting passage. "We will burn all ships trying to pass through the Strait of Hormuz," warned IRGC General Ebrahim Javari, as quoted by TASS. The resulting uncertainty sent shockwaves through global energy markets, raising the specter of supply disruptions and price volatility.
Against this volatile backdrop, Hanwha Aerospace’s business prospects have brightened. Korea Investment & Securities, one of the country’s leading brokerages, reaffirmed its ‘buy’ rating and maintained a bullish target price of 1,800,000 KRW for the company. Analyst Jang Nam-hyun, in a report cited by NewsPim, emphasized Hanwha’s growing export momentum and highlighted the competitive advantages of its signature multiple rocket launcher, the Cheonmu. "Cheonmu’s competitive edge lies in its fast delivery and operational flexibility," Jang wrote, predicting further expansion of exports in Europe.
Hanwha Aerospace’s export pipeline is indeed robust and diversified. Alongside Cheonmu, its portfolio includes the K9 self-propelled howitzer, the Redback infantry fighting vehicle, and advanced propellant charges. This breadth positions the company to tap into rising global demand, especially as European countries look to replace aging Soviet-era rocket systems. Eastern European states, in particular, face urgent needs to modernize their arsenals and reduce dependence on obsolete platforms.
A recent report from the French Institute of International Relations, cited by Korea Investment & Securities, compared Cheonmu with the U.S.-made HIMARS and Israel’s PULS. The study found Cheonmu to be one of the most balanced choices, with rapid delivery timelines standing out as a key advantage. The report also noted that France’s current multiple rocket launchers could face operational challenges after 2027 due to parts shortages, making replacements a pressing issue. Cheonmu’s open-platform approach—allowing integration of ammunition from various countries—offers greater operational flexibility than its U.S. and Israeli competitors, which are more tightly controlled by their home countries.
Hanwha’s European footprint is growing. Cheonmu systems have already been exported to Poland, Estonia, and Norway, expanding the network of operators and enhancing interoperability across the continent. As more countries adopt the platform, the potential market for ammunition and spare parts grows as well. Jang Nam-hyun estimated that, when factoring in these ongoing supply needs, the total export market could exceed 12 trillion KRW.
While Hanwha Aerospace’s stock has seen some volatility—rising from 946,000 KRW on February 2 to 1,300,000 KRW by the end of February before its latest surge—the overall trend is upward. This optimism is reflected in the broader defense sector, with other Korean firms like Hyundai Rotem and LIG Nex1 also posting gains. The sector’s momentum has been fueled not only by the Middle East crisis but also by major international deals. In late February, Korea and the United Arab Emirates (UAE) announced defense and investment cooperation projects worth more than 650 billion USD (about 93 trillion KRW), according to NewsQuest.
Exchange-traded funds (ETFs) tracking Korean defense stocks have mirrored this enthusiasm. For instance, the KODEX K-Defense TOP10 Leverage ETF posted a 71% gain in January, ranking among the top ten ETFs by performance. Although gains moderated in February as some geopolitical tensions momentarily eased, renewed instability quickly reignited investor interest.
Looking ahead, competition is expected to intensify. Japan is considering a significant relaxation of its defense export restrictions, potentially allowing a broader range of military equipment to be sold overseas. The Yomiuri Shimbun reported that the ruling Liberal Democratic Party has proposed scrapping key limitations, which would open the door for Japan to export beyond rescue, transport, surveillance, and mine-clearing equipment. However, as Reuters observed, Japan’s defense industry remains hampered by a domestic focus and lingering export controls, limiting its immediate impact on global markets.
Meanwhile, diplomatic efforts to de-escalate conflicts continue. Russia, Ukraine, and the U.S. are scheduled for trilateral ceasefire talks in early March, with hopes of calming tensions between Moscow and Kyiv. Yet, as history shows, the path to peace is rarely smooth—and defense companies like Hanwha Aerospace stand ready to benefit from both ongoing instability and the modernization needs of allies worldwide.
As Hanwha Aerospace’s stock climbs to new heights, it’s clear that the company’s fortunes are being shaped not only by the turmoil of the moment but also by strategic investments, international partnerships, and a product lineup tailored for a rapidly changing world.