[Special Stock] Hanil Danjo, New Market for Warheads and Warhead Bodies Opens... Missile Guidelines Ended After 42 Years

[Asia Economy Reporter Hyungsoo Park] Hanil Forging's stock price has been on the rise for consecutive days. The news that the South Korea-U.S. missile guidelines ended after 42 years as a result of the first summit between President Moon Jae-in and U.S. President Joe Biden appears to have influenced the stock price. The shackles that had hindered South Korea's development of missiles and rockets have completely disappeared, and it is expected that medium- to long-range missiles with ranges of 1000 to 3000 km will be developed.

As of 9:35 a.m. on the 27th, Hanil Forging is trading at 3,270 won, up 10.10% from the previous day. The upward trend has continued since the 24th.

Hanil Forging was established in May 1966 as a Korea-Germany joint venture. As the first forging company in Korea, it was designated as a defense industry company in the 1970s as part of the domestic automobile localization group and the localization policy for missile bodies. Based on forging technology, a core industry, it has continued its business to this day. It has improved production capacity through continuous facility investments such as expanding the spindle production line in 2011 and the bevel gear production line in 2013.

The main products are advanced precision automotive parts and defense industry products such as guided missile bodies and warheads. To increase range, it is necessary to reduce missile body weight, optimize external design, extend barrel length, and develop rocket submunitions.

The Korea-U.S. missile guidelines were first concluded between the South Korean and U.S. governments in 1979. At that time, the U.S. transferred technology necessary for ballistic missile development but limited the range and warhead weight of South Korean ballistic missiles to 180 km and 500 kg, respectively. The complete lifting of the Korea-U.S. missile guidelines means that the South Korean government can now increase missile range without being constrained by warhead weight.