Shares of South Korean defense contractor LIG Nex1 Co. jumped 23% in Seoul after reports that Gulf nations may expand orders for its missile interceptors. The UAE has reportedly asked LIG to supply additional interceptors, while Qatar offered to place a new order for the missile systems. Local media reported that three Gulf countries have requested early delivery of planned shipments.

South Korean defense contractors have been buoyed by booming arms sales amid the wars in Ukraine and the Middle East. Hanwha Aerospace Co., a partner in producing the M-SAM missile systems, hit a record this week, capping a staggering 3,000% rally over five years that made it one of the world's best-performing defense stocks. LIG has exported its mid-range surface-to-air missile systems, the M-SAM II, or Cheongung II, to the UAE, Saudi Arabia and Iraq in deals worth more than 12 trillion won ($8.2 billion) between 2022 and 2024.

The reports came after the UAE's defense ministry said its air defense systems have destroyed 172 of the 186 Iranian ballistic missiles detected since the conflict erupted. Among other Korean defense stocks, Hanwha Systems Co. rallied 30% on Thursday, while Korea Aerospace Industries Ltd. and Hyundai Rotem Co. rose more than 9% each. Iran's mass deployment of ballistic missiles and low-cost drones is raising demand for robust defense systems even as Korean companies' earlier sales have already helped make the Asian nation the Gulf's second-largest air defense supplier.