Defense Affiliates Become "Star Performers"... Hanwha Group Rises to Fourth in Market Capitalization

Combined Market Capitalization of 12 Listed Affiliates Reaches 180.674 Trillion Won

Hanwha Aerospace, Hanwha Systems, and Hanwha Ocean participating in 'WDS 2026' held in Riyadh, Saudi Arabia, on the 9th of last month. Yonhap News Agency

As tensions in the Middle East worsen, investment sentiment toward defense stocks has strengthened. As a result, Hanwha Group, which holds multiple defense affiliates, has risen to fourth place in market capitalization rankings, surpassing LG Group.

According to the Korea Exchange as of March 6, the combined market capitalization of Hanwha Group's 12 listed companies totaled 180.674 trillion won. This places Hanwha Group fourth after Samsung Group (1,433.272 trillion won), SK Group (826.593 trillion won), and Hyundai Motor Group (300.625 trillion won). LG Group, previously ranked fourth, has dropped to fifth place with a market capitalization of 175.029 trillion won.

This trend is attributed to the recent rise in the share prices of defense affiliates such as Hanwha Aerospace and Hanwha Systems following the Iran crisis. From March 3 to March 6, Hanwha Aerospace's stock price climbed by 286,000 won, leading to a 14.7471 trillion won increase in market capitalization. As of March 6, its market capitalization stood at 76.3653 trillion won. During the same period, Hanwha Systems' share price increased by 45,300 won, resulting in an 8.558 trillion won rise in market capitalization, reaching 30.0192 trillion won.

Securities analysts explained that although defense stocks have surged sharply in a short period due to the conflict involving the United States, Israel, and Iran, the trend of strengthening defense capabilities in the Middle East is likely to continue. As a result, they have issued an "overweight" investment recommendation for the defense sector.

Analysts expect that rising tensions in the Middle East will structurally boost demand in the defense industry. Jang Namhyun, a researcher at Korea Investment & Securities, said, "It has been confirmed that the increase in demand for weapon systems, driven by heightened geopolitical uncertainty, is not just a short-term event."

Lee Dongheon and Lee Jihan, researchers at Shinhan Investment Corp., predicted, "As the Middle Eastern order shifts from deterrence to a preemptive blocking system, demand for air defense, guided weapons, precision strike, and unmanned systems will expand."

Lee Hangyeol, a researcher at Kiwoom Securities, also stated, "Tensions in the Middle East are unlikely to be resolved in the short term, so business opportunities for domestic defense companies will grow. While there may be short-term volatility, in the medium to long term, an increase in orders will drive stock prices higher."

This content was produced with the assistance of AI translation services.