K-air defense stocks soar: UAE orders surge after Iran clash

Jun 05, 2026, 09:05 am

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Scene from the production site of the Cheongung-II surface-to-air interceptor missile. / Photo = LIG Defense & Aerospace (LIG D&A)

As the recent “missile risk” from the Middle East escalates into a full-scale confrontation, the love calls from Middle Eastern countries for South Korea’s guided weapons have evolved beyond “waiting in line” to the level of diplomatic pressure.


According to the defense industry, following the conclusion of a 9.5 trillion won contract to introduce the mid-range surface-to-air guided weapon “Cheongung-II (M-SAM)” to the United Arab Emirates (UAE) and other Middle Eastern countries, negotiations with additional regional states have now entered the final stage. If the contracts are finalized, major nations in the Middle East will be linked together in a single “K-air defense belt.”


Local sources report that those holding oil money are clamoring: “We’ll pay whatever it takes, just move us up the line and send the missiles quickly.” The reason Middle Eastern countries chose Cheongung-II as their ultimate weapon to defend their airspace is not simply cost-effectiveness. During the recent physical clash between the UAE and Iran, Cheongung-II was deployed and achieved an astonishing real-world interception rate of 99% against ballistic missiles and 93.7% against drones, thereby earning global credibility, according to defense experts at home and abroad.


The problem is that South Korea’s defense industry production capacity cannot keep up with this explosive demand from the Middle East. LIG Defense & Aerospace (LIG D&A), which oversees system integration of Cheongung-II, along with Hanwha Systems and Hanwha Aerospace, which supply radars and launchers, are running their factories around the clock. Yet they still lack the capacity to meet simultaneous demands from Eastern Europe (Poland) and three to five Middle Eastern countries. Though the tide is favorable, the industry is hitting the massive reef of production bottlenecks.


Following Cheongung-II, LIG D&A’s “Bihoong (PADEOS)” has successfully passed the final stage of the U.S. Navy’s Foreign Comparative Testing (FCT), raising the possibility of exports to the United States. It is currently one of the most closely watched precision-guided weapons in the K-defense industry.


Bihoong was originally co-developed by the Agency for Defense Development (ADD) and LIG Nex1 as a 2.75-inch (about 70mm) Medusa guided rocket system, designed to annihilate North Korea’s high-speed hovercraft (assault landing craft) attempting surprise coastal landings. Accordingly, military experts and the K-defense industry share the view that it is optimal for coastal defense in the Middle East, including the Strait of Hormuz.


                                                                                                              Koo Pil-hyun

#K-air defense #UAE #Iran 
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