Hanwha Aerospace Co. shares surged nearly 20% to a record high in Seoul trading, making it one of the world's best-performing defense stocks. The South Korean arms manufacturer has capitalized on escalating Middle East tensions, with Israel's strikes on Iran and subsequent missile barrages across Gulf states driving demand for advanced military systems.

A Bloomberg gauge of global defense stocks rose as much as 0.7% to a record high for the second consecutive session. The Seoul-based company, best known for its K9 self-propelled artillery, has expanded its Middle East presence significantly, with exports exceeding domestic revenues in 2024. Hanwha Aerospace traces its origins to 1952 when businessman Kim Chong-hee founded a firm selling industrial explosives.

Analysts project continued growth as Gulf countries increase defense spending and diversify suppliers to avoid production bottlenecks. The company's diverse portfolio spans surface-to-air missile systems, gas turbine engines for fighter jets, space rocket components, and via subsidiaries, warships and submarines. With the Kim family controlling a 15% stake now valued at $7.5 billion, Hanwha Aerospace has seen a roughly 3,000% rally over the last five years, positioning itself as a major player in the global defense market.