[Featured Stock] Hanil Forging, Yoon Seok-yeol Government Strengthens Defense Capability..."Considering Practical Deterrence Against North Korean Provocations"

[Asia Economy Reporter Hyungsoo Park] Hanil Forging is showing strong performance. As the Yoon Suk-yeol administration included the development of a ‘science and technology strong military’ in its national agenda and expressed its determination to strengthen defense capabilities, expectations for growth in the defense industry appear to be influencing the stock price.

As of 11:36 AM on the 9th, Hanil Forging is trading at 3,630 KRW, up 18.43% compared to the previous trading day.

The defense industry notes that amid fierce arms competition worldwide following Russia's invasion of Ukraine, expectations for the Yoon Suk-yeol administration's policies are adding to the momentum.

According to the Presidential Transition Committee, the ‘110 National Tasks of the Yoon Suk-yeol Government’ include ▲promotion of ‘Defense Innovation 4.0’ at the level of a second founding of the armed forces to foster an AI (Artificial Intelligence) science and technology strong military ▲drastic reinforcement of capabilities to respond to North Korea’s nuclear and missile threats.

The main points include the introduction of AI-based manned and unmanned combined combat systems, establishment of a Korean-style missile defense system, early operational deployment of the long-range artillery interception system (hereinafter Korean Iron Dome), and securing independent intelligence surveillance and reconnaissance capabilities.

North Korea’s continuous high-intensity military provocations are also expected to strengthen the government’s efforts to enhance defense capabilities. On the 4th, North Korea launched an intercontinental ballistic missile (ICBM) presumed to be the Hwasong-15, followed by a submarine-launched ballistic missile (SLBM) on the 7th. South Korea and the United States judge that North Korea’s nuclear test is also imminent. There is growing weight to the view that the security situation on the Korean Peninsula will reach a critical point with the inauguration of the Yoon Suk-yeol government.

Earlier, the Yoon Suk-yeol presidential transition team defined North Korea’s launch of the submarine-launched ballistic missile (SLBM) as a provocation and announced plans to prepare fundamental countermeasures. Unlike the Moon Jae-in administration, which urged resolution through diplomacy, it indicated a response with a hardline stance.

On the 6th, President-elect Yoon Suk-yeol chaired a security situation briefing at the National Crisis Management Center, emphasizing, “There must be no gaps in national security,” and stating, “We will promote practical measures to strengthen our security capabilities to prepare for all threats, including North Korea’s nuclear and missile threats.”