South Korean defence stock LIG Nex1 Co. surged more than 17% on Friday, March 6, extending its sharp rally since the outbreak of the US-Iran war in the Middle East. LIG Nex1 stock price surged as much as 17.8% to 899,000 KRW on the Korea Exchange.
The defence stock had already rallied 26% in the previous session and jumped nearly 30% on March 3. In five trading sessions, LIG Nex1 shares have skyrocketed 78.7%, taking the company’s market capitalisation near 18 trillion KRW.
The rally in the defence stock comes amid reports that its air defence systems were used to intercept Iranian missiles launched at the United Arab Emirates, as the Middle East conflict intensified.
Local media reports suggest that Gulf nations may expand orders for LIG Nex1’s missile interceptors to counter potential . The United Arab Emirates has reportedly asked the company to supply additional interceptors, according to one report. Another report indicated that three Gulf countries have requested early delivery of planned shipments, while Qatar has offered to place a new order for the missile defence systems.
These developments follow a statement from the UAE defence ministry, which said earlier this week that its air defence systems had destroyed 172 of the 186 Iranian ballistic missiles detected since the conflict erupted.
LIG Nex1 has exported its mid-range surface-to-air missile systems (M-SAM II), also known as Cheongung II, to the UAE, Saudi Arabia and Iraq between 2022 and 2024 in deals valued at over 12 trillion won ($8.2 billion), according to a Bloomberg report.
Other South Korean defence stocks have also rallied sharply amid the . Hanwha Systems Co. surged 30% on Thursday, while Korea Aerospace Industries Ltd. and Hyundai Rotem Co. gained more than 9% each.
South Korean defence contractors have benefited from booming global arms demand, driven by geopolitical conflicts including the wars in Ukraine and the Middle East.
Meanwhile, Hanwha Aerospace Co., a partner in the production of the M-SAM missile systems and other defence platforms, also hit a record high this week. The stock has delivered a staggering 3,000% rally over the past five years, making it one of the world’s best-performing defence stocks, Bloomberg reported.
Technical Outlook
According to Anshul Jain, Head of Research at Lakshmishree Investments, LIG Nex1’s share price has confirmed a decisive breakout from a 47-week bullish flag pattern near the KRW 550,000 level, signalling a continuation of the prevailing uptrend.
“The breakout was accompanied by a gap-up move, which typically reflects aggressive institutional participation rather than incremental buying. Volume expansion during the breakout further validates the move and strengthens the underlying trend structure across timeframes,” Jain said.
The stock has already achieved its first measured objective near KRW 835,000 and continues to hold above the breakout zone, indicating strong demand absorption.
“With momentum intact and no visible distribution yet, the next logical projection lies near the KRW 1,000,000 mark,” he added.
Jain noted that as long as the stock sustains above the breakout pivot and the gap zone remains protected, the risk-reward continues to favour further upside expansion rather than consolidation.