In addition to tensions on the Korean Peninsula, growing demand for arms — spurred in part by Russia's invasion of Ukraine — has also propelled military spending.
South Korean weapon systems have found their way into markets like the Middle East and even NATO countries, which traditionally tries to operate similar weapon systems so as to maintain interoperability. Demand for arms — spurred partially by Russia's invasion of Ukraine — has also propelled military spending, with global military spending worldwide increasing since 2018 to reach $2.1 trillion as of 2021, according to SIPRI Arms Transfer Database.Shares of Hanhwa Aerospace, a subsidiary of South Korean conglomerate Hanhwa Group, saw a whopping 66% rise since the start of the year, and a nearly 90% surge in the last 12 months.