As global air defense missile shortages intensify and supply chain disruptions worsen, Korea Investment & Securities maintained its "overweight" investment opinion on Korea's domestic defense industry on July 24, 2026, highlighting the leap forward of K-defense industry. The analysis notes that Korean companies, having proven overwhelming performance and rapid delivery in the Middle East, are now emerging as global defense powerhouses, eyeing even the European market.

In a report released that day, researcher Jang Nam-hyun of Korea Investment & Securities diagnosed that while global air defense missile demand is exploding, it will be difficult for supply shortages to be resolved in the short term. In particular, he noted that while Lockheed Martin, a leading player in the global air defense missile market, is pursuing development plans for the new interceptor 'PAC-3 ACE,' actual mass production is expected to be possible only from 2029 onwards, making structural supply shortages inevitable. European countries are taking short-term measures through local production and supply chain establishment, but Jang pointed out this falls short of being a fundamental solution.

This global air defense missile supply chain instability is expected to persist for years to come. As heightened security threats and countries' defense enhancement efforts converge, demand for air defense missiles and related value chains is anticipated to continuously expand.

The global missile supply shortage crisis is acting as a decisive opportunity for a leap forward for Korea's defense industry (K-defense). Domestic defense contractors have already achieved major orders in the Middle East market, securing powerful references that draw attention on the world stage. This is evaluated as a case that demonstrates not just product sales but the superior performance of Korean-made air defense missiles and delivery speed that surpasses competing nations.

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K-defense companies are solidifying their position in overseas markets, using their Middle East success as a springboard. In particular, they are recently accelerating market entry into Europe, actively increasing establishment of joint ventures with local defense companies and strategic investments. This is interpreted as a long-term strategy for domestic companies to position themselves not merely as exporters but as key partners in global defense production and supply chains.

Korea Investment & Securities stated that it maintains its "overweight" investment opinion on the defense industry sector in light of such structured global demand and strengthened K-defense competitiveness. LIG Nex1 was presented as the most preferred stock, emphasizing overwhelming growth potential. LIG Nex1 is expected to achieve an annual average earnings per share (EPS) growth rate of 44.2% from 2025 to 2028 through expanding overseas revenue share, drawing investor expectations. In particular, the high possibility of early delivery of LIG Nex1's flagship air defense missile Chiongung-II is analyzed as an important driver for upward revision of this company's earnings estimates. This demonstrates high trust in Korea's defense technology and production capabilities.

Researcher Jang Nam-hyun emphasized that "Korea's defense industry is firmly establishing itself as an industry with global competitiveness, transcending simple exports amid structural changes in the global air defense missile market." He particularly forecasted that "long-term and multifaceted overseas market strategies such as establishment of local joint ventures and expansion of strategic investments in Europe will be key drivers leading to sustained growth of domestic defense companies," suggesting a bright future for K-defense industry.