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The Cheongung missile, the core of K-air defense soaring into the sky. A missile from the domestically developed Cheongung family of medium-range surface-to-air guided weapons is test-fired at a testing ground on the West Coast. The Cheongung-II is a Korean-style air defense weapon for which LIG Defense & Aerospace (LIG D&A) handles system integration and guided missiles, Hanwha Systems provides radars, and Hanwha Aerospace manufactures launchers. Since 2022, it has emerged as a flagship export weapon of K-defense by securing consecutive export contracts with multiple Middle Eastern nations. / Photo = Yonhap, Data = Defense Acquisition Program Administration

LIG Defense & Aerospace (LIG D&A)'s "export formula" is changing. The company is expanding beyond its conventional export strategy centered on finished goods toward co-development and co-production with local enterprises. Following its successful foothold in the Middle Eastern market with Cheongung-II, the defense firm is pushing to penetrate air defense markets in the United States and Europe by strengthening technical and supply chain cooperation with local partners.   

Starting with exports to the Middle East in 2022, the company secured successive contracts with other Middle Eastern countries in 2024. As of the end of the second quarter of this year, Cheongung-II order backlogs from three Middle Eastern nations stood at 9.89 trillion won.   

This export growth is translating directly into financial performance. Second-quarter revenue reached 1.1101 trillion won, while operating profit rose 29.5% year-on-year to 105.7 billion won. The share of exports in overall sales also climbed from 17.4% to 25.4% over the same period.   

However, total order backlog fell by 740 billion won from the preceding quarter to 24.57 trillion won at the end of the second quarter. Operating profit also fell slightly short of market expectations.

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The domestically developed guided rocket "Bigung" targeting the U.S. market. The 2.75-inch (70mm) guided rocket "Bigung" developed by LIG D&A is test-fired from a vehicle-mounted launcher. Bigung demonstrated its technological capabilities by hitting all six targets during the Foreign Comparative Testing (FCT) conducted in Hawaii in July 2024. / Photo = Provided by the Defense Acquisition Program Administration

Spearheading entry into the U.S. market is the 2.75-inch guided rocket Bigung. In the final firing test of the Foreign Comparative Testing (FCT) conducted in waters off Hawaii in July 2024, Bigung hit all six targets.

LIG D&A signed a Teaming Agreement (TA) with U.S. startup Firehawk Aerospace on the 13th (local time) at the AUSA annual meeting and exposition in Washington to develop a propulsion system for Bigung. Firehawk specializes in 3D-printed propellant technology. The initiative aims to broaden LIG D&A's foothold in the U.S. market through technical collaboration with local defense firms.

However, this agreement does not equate to procurement contracts with the U.S. military. Specific development timelines and work share details were not disclosed, and purchase contracts with the U.S. military have not been finalized.

In Europe, cooperation with Germany's Rheinmetall Air Defence serves as the primary pillar. The two companies forged a strategic partnership last June and are pursuing joint development of short-range air defense missiles. Discussions regarding the establishment of a joint venture are also underway.

At the MSPO international defense industry exhibition held in Poland last September, the two firms unveiled mockups of the short-range air defense missile and vehicle-mounted launcher currently under development. However, the creation of the joint venture has not yet been finalized.

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The domestically developed surface-to-air guided weapon "Haegung" soaring over the sea. The domestic surface-to-air guided weapon "Haegung (K-SAAM)" is vertically launched from a Republic of Korea Navy vessel. Produced by LIG D&A, Haegung is a weapon system designed to defend naval vessels from aerial threats including enemy aircraft and anti-ship missiles. / Photo = Republic of Korea Navy, Data = Defense Acquisition Program Administration, LIG D&A

Haegung marks first export as domestic armament is mounted on foreign naval vessels

The approach of supplying domestic armament in cooperation with foreign shipbuilders has also yielded results. Last April, LIG D&A signed a contract worth approximately 94 million dollars (140.4 billion won) with Malaysia to supply Haegung (K-SAAM) surface-to-air guided missiles. This marks the first overseas export of Haegung.

Haegung will be installed on three Littoral Mission Ships of the Royal Malaysian Navy being built by Turkiye's STM. This serves as an example of broadening export channels for domestic guided weapons through cooperation with foreign platform manufacturers.

Alongside the achievements of export expansion, points are being raised that the scope of cooperation and project stages must be clearly distinguished.

Lee Jun-gon, professor in the Department of Defense Acquisition at Konkuk University, pointed out, "Since Cheongung-II is a collaborative project where LIG D&A handles system integration and guided missiles, while Hanwha Systems and Hanwha Aerospace handle radars and launchers respectively, it is premature to evaluate it as an export of an entire air defense network."

Professor Lee added, "The success of localization hinges on the scope of technology transfer, intellectual property protection, and long-term logistical support costs." He also emphasized that attention should be paid to the fact that U.S. firm Firehawk received investments from Hanwha, noting, "Bigung's settlement in the U.S. market must be proven through actual procurement contracts and mass production track records rather than mere agreements."

                                                                                                                Ku Pil-hyun