From tanks to drones: South Korea’s defense firms face a new battlefield test
CNBC · Lim Hui Jie ·
South Korean defense stocks rode a wave of global rearmament for the past two years, but they have plunged in 2026.
South Korean defense stocks rode a wave of global rearmament over the past two years.
Russia’s invasion of Ukraine accelerated military spending across Europe. South Korean companies drew buyers with weapons that were competitively priced and could be delivered relatively quickly, including tanks, artillery and missile systems.
But that rally has given way to a sharp sell-off, with shares of several major South Korean defense companies plunging this year.