# From tanks to drones: South Korea’s defense firms face a new battlefield test

- URL: https://talkfuse.com/story/from-tanks-to-drones-south-koreas-defense-firms-face-a-new-battlefield-test/
- Published: 2026-11-05T08:07:43+00:00
- Updated: 2026-11-05T09:35:47+00:00
- Original publisher: CNBC (publisher lean: Centre)
- Original article: https://www.cnbc.com/2026/11/05/south-korea-defense-weapon-war-stocks-fall.html
- Topics: Asia, Business, Markets, World

## Key points

- Korean defence firms’ combined value fell from 170 trillion to 62 trillion won.
- Investors are weighing weaker results and changing military priorities.
- Conventional weapons remain in demand as firms develop drone capabilities.

## Summary

South Korea’s leading defence companies have lost much of their stock-market value as investors question whether their traditional strengths in tanks and artillery match a battlefield increasingly shaped by drones, counter-drone systems and air defence. The shift in military priorities is one concern, alongside weaker earnings, a stronger won, delayed export orders and competition for investment from the semiconductor sector.

The combined value of Hanwha Aerospace, LIG D&A, Hyundai Rotem and Korea Aerospace fell to about 62 trillion won at the end of October, from a 52-week peak of 170 trillion won. Hanwha’s third-quarter operating profit dropped more than 46% year on year and Hyundai Rotem’s fell 11.1%, while Korea Aerospace reported higher sales and profit. Analysts say conventional weapons remain important, pointing to recent Korean deals including a 546 million-euro Spanish K9 order and a $922 million Norwegian rocket-system order; they also expect drone and unmanned-system exports to grow, though building a proven track record may take time.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.