"Only 2,000 Won to Take Down Attack Drones?"... Laser Interception Systems Boost Defense Stocks [Weekend Money]

Cheongwang Emerges as a Low-Cost Drone Interception System Amid Drone Proliferation
Supply Chain Includes Victek, Firstec, Green Optics, and Taihan Cable

Laser anti-aircraft weapon (Block-I) 'Cheongwang'. Provided by the Defense Acquisition Program Administration

As drones have emerged as a key force in modern warfare, laser weapon systems capable of intercepting drones at low cost are attracting increasing attention. As there are clear limitations to the continued use of expensive interceptor missiles to stop drones that cost millions to tens of millions of won, Hanwha Systems' 'Cheongwang', a laser anti-aircraft weapon with a per-shot launch cost of approximately 2,000 won, is being highlighted as a new growth engine for the defense industry.

Cheongwang is a short-range air defense weapon that uses lasers to directly destroy small drones. It can neutralize small drones at distances of 3–5 kilometers within seconds, and the cost of firing the laser is only about 2,000 won per shot. The key advantage is that it does not consume interceptor munitions like missiles; it relies on electricity and can be operated repeatedly.

Yang Seung-yoon, a researcher at Eugene Investment & Securities, explained, "With the proliferation of drones, the area to watch is the low-cost interception system," adding, "it's difficult to continue expending expensive interceptor missiles just to stop drones costing millions to tens of millions of won."

Cheongwang has already moved beyond the development stage and entered mass production and operational deployment. The Agency for Defense Development (ADD) oversaw its development, with Hanwha Aerospace participating in prototyping and mass production. In April of last year, the laser business was transferred to Hanwha Systems. In June of that same year, Hanwha Systems signed an initial mass production contract for Block-I worth approximately 100 billion won, and operational deployment began in December.

Performance upgrades and the expansion of product lineups are also underway. The government has included a new mobile Block-II R&D project in the 2027 budget proposal. Hanwha Systems recently completed development of a prototype armored vehicle-based laser weapon with an output of around 50kW, aiming for mass production by the end of 2027.

The mobile Block-II is being developed to enhance sustained engagement capabilities by equipping a truck with power and cooling systems. The armored vehicle type is expected to focus on protecting frontline maneuver units by utilizing confined onboard space. Separately, Hanwha Systems has unveiled a tactical laser vehicle with a 20kW output.

Further improvements to the performance of the original Cheongwang are anticipated. The development of a domestic laser oscillator has been completed and will be applied from subsequent mass-produced batches, with core performance expected to improve by more than 50% compared to the current model. The localization rate is also projected to increase from 76% to 90%. As such, mass production expansion, performance upgrades, and the addition of mobile models are progressing simultaneously.

Eugene Investment & Securities noted that Cheongwang's potential is also being recognized in overseas markets. There has been longstanding interest in laser anti-aircraft weapons in the Middle East, including Saudi Arabia, where such systems have been considered for major facility defense. More recently, export discussions targeting Asia and Europe have reportedly been initiated at MSPO 2026 in Poland.

Global competition is heating up as well. Prominent competing products include Israel’s 'Iron Beam' by Rafael and the 'LOCUST' by AeroVironment in the United States. Eugene Investment & Securities assessed that, while South Korea is ranked between third and seventh in laser weapon technology after the United States and Israel, it already possesses experience in both mass production and operational deployment. At the Defense Drone Technology Exhibition held on the 16th, Cheongwang successfully intercepted six target drones in sequence.

Several companies, in addition to Hanwha Systems, are mentioned in relation to the supply chain. Hanwha Systems is in charge of system integration for Cheongwang as well as the provision of laser oscillators. victek supplies the oscillator system controllers and control/monitoring electronic components, while Firstec is responsible for the laser cooling systems. Green Optics provides optical systems such as mirrors, and Taihan Cable supplies high-power ytterbium-doped fiber (YDF) laser modules used in Cheongwang.

Researcher Yang analyzed that "whether Cheongwang is able to establish a growth trajectory extending beyond merely a new weapon system—from Block-I mass production to Block-II development, localization and performance upgrades, and exports—will be the key variable affecting the medium and long-term performance and stock prices of related companies."

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