Hanwha (000880), LIG Nex1 — now LIG D&A — and Hyundai Rotem (064350) each posted sharp gains in the global defense industry rankings over the past year. Korea Aerospace Industries (KAI), by contrast, fell more than 10 places as its defense revenue declined.
Four South Korean companies — Hanwha, LIG D&A, Hyundai Rotem and KAI — made the 2026 list of the world's 100 largest defense firms released on the 31st of last month by Defense News, a U.S. publication covering defense and security. Defense News ranked companies by their 2025 defense segment revenue.
Hanwha placed highest among the Korean firms, rising six spots to No. 16 from No. 22. Its defense revenue last year reached $10.44 billion (about 14.33 trillion won), a 53% surge from a year earlier. The gain reflects rapid expansion of its defense business as exports of the K9 self-propelled howitzer and Chunmoo multiple rocket launcher grew in Europe and other overseas markets.
LIG D&A moved up one spot to No. 52 from No. 53. The company's 2025 defense revenue was $3.03 billion (about 4.15 trillion won), up 20% from the previous year.
Hyundai Rotem posted a larger gain, climbing six spots to No. 61 from No. 67. Its defense revenue last year was $2.46 billion (about 3.38 trillion won), a 42% increase from 2024. Analysts attribute the standout growth to the expansion of its K2 tank business in Poland and other overseas markets.
KAI, however, dropped 12 spots to No. 74 from No. 62. Its 2025 defense revenue fell 3.9% from a year earlier to $1.86 billion (about 2.55 trillion won). Industry officials point to delays in the FA-50 export contract with Poland and rising cost pressure from a weaker won as causes of KAI's weak performance last year. Meanwhile, many global defense companies posted substantial revenue growth over the same period, making KAI's decline in the rankings relatively steeper. KAI also reported second-quarter results this year that fell short of expectations.
Lockheed Martin of the United States ranked first worldwide, with defense revenue of $72.14 billion (about 98.75 trillion won) last year. RTX ranked second at $46 billion (about 63 trillion won), followed by General Dynamics at $39.4 billion (about 54 trillion won) and Northrop Grumman at $37 billion (about 51 trillion won), giving U.S. defense firms the top four spots.
Britain's BAE Systems ranked fifth and U.S.-based Boeing sixth. Aviation Industry Corporation of China (AVIC) came in seventh, while L3Harris, Leonardo and Airbus took the eighth through 10th spots. Defense News compiles defense revenue each year from company submissions, regulatory filings and industry analysis to select the world's 100 largest defense firms.
