LIG Defense & Aerospace: First MSAM-II LOI in Asia

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LIG Defense & Aerospace: First MSAM-II LOI in Asia

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LIG Defense & Aerospace

First MSAM-II LOI in Asia

Maintain Rating: BUY | PO: 1,360,000 KRW | Price: 717,000 KRW

Indonesia issues LOI to purchase MSAM-II 08 June 2026

Indonesia's Ministry of Defense Logistics Agency issued a Letter of Intent (LOI) today to Equity

procure MSAM-II missile interceptors and South Korea’s air defense system (source:

KJ Hwang >>

Janes). Indonesia’s proposal included 2 units of MSAM-II batteries including launchers, Research Analyst

radars, and control systems (estimated at W850bn in total). Indonesia also requested an Merrill Lynch (Seoul) kj.hwang@bofa.com

additional package for training, logistics support, spare parts, and technology transfer,

Dongho Shin >>

according to Janes’ report. Research Analyst

Merrill Lynch (Seoul)

Export diversification outside Middle East dongho.shin@bofa.com

Once contract terms are finalized over the coming weeks/months, this LOI is likely to

mark LIG D&A’s first-ever MSAM-II missile interceptor order from Asia. While MSAM-II

has been purchased by the UAE, Saudi Arabia, and Iraq over the past 4 years, we see its Stock Data

export diversification outside Middle East as an outcome of proven interception rate, Price 717,000 KRW

improving interoperability with Western systems, competitive costs and delivery lead- Price Objective 1,360,000 KRW

time to cope with rising asymmetric warfare and evolving threats. In Apr’26, LIG D&A Date Established 7-May-2026

also secured HAEGUNG missile export orders from Malaysia. Investment Opinion C-1-7

New LOI deals outside MSAM-II underway 52-Week Range 1,118,000360,000 KRW-KRW

LIG D&A is currently in negotiation with >6 states for MSAM-II and LSAM (co-produced Mrkt Val / Shares Out (mn) 10,238 USD / 22.0