Hanwha and UAE state defense group EDGE signed a strategic term sheet at EDGE headquarters in Abu Dhabi on September 16, 2026, setting the direction for cooperation on an integrated air defense network for the United Arab Emirates. Hanwha Systems CEO Yang Ki-won and EDGE Group CEO Hamad Al Marar signed the document, which covers the Korean L-SAM long-range surface-to-air missile system, additional M-SAM (Cheongung-II) medium-range capability, counter-drone defenses, and the K239 Chunmoo multiple rocket launcher. Subject to government approvals, the two sides will explore a joint venture in the UAE plus local production and technology transfer. No value was disclosed and the term sheet is not a procurement contract; it builds on the Korea-UAE defense framework agreed in February 2026 and on the 2022 M-SAM sale worth about $3.5 billion. Demand is driven by the 2026 Iranian missile and drone campaign against the UAE, during which Cheongung-II recorded its first combat intercepts.
|Korea Times / Army Recognition / Asian Military Review
The Ministry of Foreign Affairs and the Ministry of National Defense hosted diplomats from 15 countries, including Iraq, Canada, Brazil, Oman, Kuwait, and Mexico, at the Army training complex in Yangpyeong, Gyeonggi, on September 15, 2026. Guests rode the K2 Black Panther tank and the K21 infantry fighting vehicle, watched live-fire drills, and viewed the Korean Combat Engineer Vehicle, the Cheongung-II medium-range surface-to-air missile system, drones, quadruped robots, and the Army TIGER combat system. Second Vice Foreign Minister Kim Jin-a told the group that the Korean defense industry "has grown in no small part just because of the confidence that you placed in our products." The acting Iraqi head of mission rode a K21 and sat in the K2 gunner position; Iraq bought eight Cheongung-II batteries for $2.8 billion in 2024 and is negotiating for about 250 K2 tanks.
South Korea's leading defense companies are exhibiting at MSPO 2026, one of Europe's three largest defense shows, held September 8-11 in Kielce, Poland. Hanwha Aerospace and Hanwha Systems share a 274-square-meter booth under the slogan "Proven Partnership, Strategic Capabilities, Sovereign Defence," showing a multi-layered air defense lineup (L-SAM, H-SHORAD, H-Shield counter-drone, 40mm unmanned air defense), laser weapons including the Cheonkwang anti-aircraft laser and 50kW and 20kW mobile laser vehicles, the K9A2 howitzer, K-NIFV, unmanned ground systems, and the Striker-S unmanned surface vessel with a Chunmoo launcher; Hanwha Systems will demonstrate an AI satellite-imagery analysis solution on September 9. LIG Defense & Aerospace is presenting Cheongung-II, L-SAM, and the KGGB guided glide bomb, targeting Poland's multi-layered air defense and precision-munitions programs. SNT Dynamics and SNT Motiv are showing a 120mm vehicle-mounted mortar, a three-barrel 20mm remote weapon station, a 1,500-1,700 hp tank powerpack, and small arms including the K2C, K16, and K4, pitching integrated MRO and product-support packages. Hyundai Rotem is attending for the fifth consecutive year and KAI is also present, with the Korean delegation expected to review K2, K9, and FA-50 contract execution and expanded post-sale support with Polish counterparts.
Foreign Minister Cho Hyun met Kuwaiti Foreign Minister Sheikh Jarrah Jabir Al-Ahmad Al-Sabah on August 25, 2026 to discuss defense cooperation including a potential Cheongung-II (M-SAM Block II) purchase, as Gulf demand for the system continues to build after its combat debut with the UAE. Korean reporting says a Kuwaiti royal raised concerns that Korea's current output of roughly eight battery systems per year cannot keep pace with orders from the UAE, Saudi Arabia, and Iraq plus active discussions with Qatar and Kuwait, making an expansion of the LIG Nex1-led production line all but inevitable. A Ukrainian analysis circulating the same week argued that Cheongung-II's interceptor output remains far below Patriot's, so Gulf buyers are likely to operate both systems in parallel rather than replace Patriot outright.
Hanwha Systems reported consolidated second-quarter revenue of 1.1176 trillion won, up 45% year-on-year, and operating profit of 103.7 billion won, up 219%, lifting the operating margin 5.1 percentage points to 9.3% and marking the company's best-ever quarterly result. Net profit rose 14% to 52.7 billion won and the order backlog stood at 11.2959 trillion won at the end of June. The result was a sizeable earnings surprise against a consensus of 952.7 billion won in revenue and 57.9 billion won in operating profit. Management credited large-scale export programs entering full-scale delivery — gunner's sights and fire control systems for Poland's K2 tanks, and Cheongung-II multi-function radars for the UAE and Saudi Arabia — alongside domestic mass-production work including the KF-21 AESA radar, Ulsan-class Batch-III combat management systems, and domestic K2 production. The ICT division added contributions from Hanwha Life Insurance system upgrades, Hanwha Philly Shipyard ERP implementation, and Hanwha Aerospace smart plant construction, with Philly Shipyard losses narrowing toward a targeted turnaround.
South Korean defense stocks surged on June 16 as prospects for a US-Iran ceasefire brightened, with investors anticipating resumed Middle Eastern export negotiations. Hanwha Aerospace rose over 10%, Hyundai Rotem gained 11%, and LIG Defense & Aerospace spiked 28%, nearly hitting the 30% daily limit. Analysts noted that Hanwha's suspended Saudi Arabia negotiations and Hyundai Rotem's Iraq K2ME tank talks could resume once hostilities end. The Cheongung-II's combat-proven performance in the UAE has positioned LIG for major post-war orders.
The UAE launched an accelerated airlift operation on June 12, deploying a fleet of eight C-17 Globemaster III military transport aircraft to move a complete Cheongung-II air defense battery from Daegu Air Force Base to the Gulf region. The urgent transfer underscores growing Middle Eastern demand for Korean missile defense systems following the Cheongung-II's combat-proven 96% intercept rate. Seoul is reviewing the request despite previous caution about supplying weapons to countries involved in active conflicts.
South Korean defense stocks surged sharply as Middle Eastern nations pressed for faster deliveries of the Cheongung-II air defense system following its combat-proven 96% intercept rate against Iranian missiles and drones. LIG Nex1 shares soared 30%, Hanwha Aerospace gained nearly 25%, and KAI rose over 12%. Combined Cheongung-II contracts in the Middle East now total 9.5 trillion won (~$6.2B), with buyers reportedly willing to pay premiums for expedited delivery of guided missiles.
South Korea is preparing to sign contracts with Qatar and Kuwait for the supply of KM-SAM II (Cheongung-II) air defense systems, following the system's combat-proven 96% interception rate in the UAE against Iranian missiles. If finalized, the number of Gulf Cheongung-II operators would rise to five (UAE, Saudi Arabia, Iraq, Qatar, Kuwait). The surge in demand has raised questions about LIG Nex1's production capacity to meet simultaneous orders from multiple customers.
Rising demand from Saudi Arabia and the UAE to accelerate deliveries of Cheongung-II air defense systems is colliding with South Korea's industrial capacity limits and domestic military requirements. On April 12, The Wall Street Journal reported that Riyadh approached Hanwha Aerospace and LIG D&A about expediting Cheongung-II missile deliveries, while Abu Dhabi sought additional interceptor missile supplies following sustained exchanges with Iran. Analysts note this creates a structural trade-off: production allocated to export clients reduces the pace of domestic systems fielding. The longer-term solution lies in expanding capacity through new facilities and supply chains.
Saudi Arabia, the UAE, and Qatar are requesting faster deliveries of South Korea's Cheongung-II (M-SAM) air defense system after its combat debut achieved a reported 96% interception rate against Iranian ballistic missiles. The UAE has asked for interceptor missiles to be supplied ahead of schedule if early battery delivery proves impossible. Six weeks of airstrikes have rapidly depleted regional interceptor stockpiles, creating urgent demand. LIG Nex1 said speeding up the timeline would be difficult due to existing production commitments.
South Korea expedited delivery of a third Cheongung-II M-SAM battery to the UAE, reported as already en route to or arrived in the Middle East with operational readiness expected as early as April 2026. Separately, more than 30 interceptor missiles drawn from ROK domestic stocks were airlifted via UAE C-17 transports from Daegu Air Base around March 8-9. The rapid resupply underscores the system's strategic importance following its successful combat debut against Iranian missiles.
The Cheongung-II (M-SAM Block II) medium-range air defense system achieved a reported 96% intercept rate in its combat debut in the UAE against Iran's large-scale missile attacks, according to a South Korean lawmaker citing sources familiar with UAE operations, with two batteries firing approximately 60 interceptors. The system's performance exceeded expectations and validated years of South Korean missile defense development.
South Korea's Cheongung-II (M-SAM Block II) air defense system achieved a reported 96% hit rate in its first combat engagement, with two UAE batteries firing about 60 interceptors against Iran's missile attacks, according to lawmaker Yoo Yong-won citing sources. Across all UAE air defenses, the UAE defence ministry reported 161 of 174 ballistic missiles destroyed and 645 of 689 drones intercepted. The UAE made an emergency request for more than 30 Cheongung-II interceptors.
Saudi Arabia signed a $3.2 billion contract with LIG Nex1 for the Cheongung-II medium-range surface-to-air missile defense system, Seoul's defense ministry disclosed in February 2024. Signed the previous November, it is LIG Nex1's second overseas sale of Cheongung-II after the UAE and a major Middle East breakthrough.