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
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.
The Cabinet approved a 73.28 trillion won ($51 billion) defense budget for 2027 on September 1, 2026, an 8.2% increase from 67.7 trillion won in 2026 and the first time the total has crossed 70 trillion won. The force-improvement portion tied to the wartime operational control (OPCON) transfer rises to 21.3 trillion won from 18.6 trillion won, funding command-and-control upgrades, surveillance drones, and L-SAM long-range interceptors. KF-21 Boramae production funding jumps to roughly 3.3 trillion won from 1.4 trillion won, with an additional 150 billion won earmarked for follow-on production. Nearly 100 billion won is allocated for the first time to the Jangbogo-N nuclear-powered submarine program, covering initial design and nuclear-related reviews. Defense AI spending more than doubles to 361 billion won for drone swarms, attack drones, and counter-drone systems, and the number of full-time reservists nearly doubles from 3,700 to 7,000. Defense spending would reach 2.33% of GDP, still well short of the government's stated 3.5% target. The bill was submitted to the National Assembly on September 3.
An explosion at Hanwha Aerospace's Daejeon facility on June 1 killed five workers and injured two during a cleaning operation involving solid rocket propellant residue. The Daejeon plant — a national high-security defense facility responsible for Chunmoo MLRS, L-SAM, and precision-guided munitions — was partially shut down under a suspension order. CEO Sohn Jae-il was booked under the Serious Accidents Punishment Act, and authorities are considering booking Hanwha Group Vice Chairman Kim Dong-kwan. The incident raises questions about safety practices at Korea's largest defense manufacturer.
The Defense Project Promotion Committee approved the purchase of Standard Missile-6 (SM-6) long-range ship-to-air missiles via U.S. FMS for 530 billion won (~$351.5M). The SM-6s will equip three King Jeongjo the Great-class (KDX-III Batch-II) Aegis destroyers through 2034. SM-6 has a 460km range and 36km altitude capability. The budget was reduced from an original 770 billion won plan with a reduced missile quantity.
DAPA approved accelerated deployment of the Low-Altitude Missile Defense (LAMD) system — dubbed the "Korean Iron Dome" — to 2029, two years ahead of the original 2031 schedule. The system is designed to intercept North Korean artillery and rocket attacks targeting the Seoul metropolitan area. Government will invest 842 billion won ($558M) in development.
Hanwha Aerospace showcased its L-SAM long-range surface-to-air missile system and Chunmoo multiple rocket launcher at the Brussels European Defence Exhibition (BEDEX) 2026 from March 12-14, marking the L-SAM's first appearance at a European defense show. The L-SAM intercepts ballistic missiles at altitudes above 40 km using hit-to-kill technology, with mass production having begun in 2025. Hanwha also displayed the Chunmoo launcher alongside four types of guided missiles with ranges from 80 km to 290 km.
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.
South Korea's L-SAM long-range surface-to-air missile system, under development by the Agency for Defense Development, successfully intercepted a target missile in a test at the Anheung site in Taean, its third success in four tests and a major milestone for South Korea's indigenous missile defense capability within the KAMD framework.