LIG D&A Policy-backed W500B preferred raise to accelerate missile capacity expansion

Research evidence excerpt

LIG D&A Policy-backed W500B preferred raise to accelerate missile capacity expansion

J P M O R G A N Asia Pacific Equity Research

26 June 2026

LIG D&A Overweight

079550.KS, 079550 KS

Policy-backed W500B preferred raise to accelerate Price (25 Jun 26):W775,000

missile capacity expansion Price Target (Dec-26):W1,100,000

LIG D&A announced a KRW 500bn equity financing via third-party allotted Korea Consumer, Defense and

issuance of 876,153 unlisted preferred shares (no new common issuance) likely Shipbuilding

to the policy-backed National Growth Project Fund. Proceeds are designated Simon Han AC

for facility CAPEX, aligned with management’s push to expand air-defense/ (82-2) 758-5711

missile production capacity (Gumi/Gimcheon) amid strong demand. We view this simon.x.han@jpmorgan.com

as a positive, “common-share-friendly” funding approach (no share-count J.P.BranchMorgan Securities (Far East) Limited, Seoul

dilution; limited control impact), an encouraging signal from a typically

conservative management team that end-demand visibility is strengthening, and

also reconfirmation of gonverment’s supportive stance towards defense exports.

We hope to hear from management any indication on capex-to-output conversion,

update on current production and delivery schedule for existing customers, order

pipeline update, earnings implication from increased CAPEX. Reiterate OW.

• What happened? The company will raise W500B through issuance of

876,153 preferred shares at W570,676 per share; common shares unchanged

at 22,000,000 pre-raise. Capital is earmarked for facility investment, i.e.,

production capacity expansion to meet increasing missile / integrated air-

defense demand. The preferred is unlisted and non-voting; pricing uses a