J.P. Morgan South Korea FTM 29 Jun 26 LIG D&A; Korea Defense; Korea Insurance; Korea Data Watch and More

Research evidence excerpt

J.P. Morgan South Korea FTM 29 Jun 26 LIG D&A; Korea Defense; Korea Insurance; Korea Data Watch and More

Asia Pacific Equity Research

South Korea First to Market 29 June 2026

Top Stories

LIG D&A (Simon Han) (079550 KS, OW, PT W1,100,000)

Policy-backed W500B preferred raise to accelerate missile capacity expansion

LIG D&A announced a KRW 500bn equity financing via third-party allotted issuance of 876,153 unlisted preferred

shares (no new common issuance) likely to the policy-backed National Growth Project Fund. Proceeds are designated

for facility CAPEX, aligned with management’s push to expand air-defense/missile production capacity (Gumi/Gimcheon)

amid strong demand. We view this as a positive , “common-share-friendly” funding approach (no share-count 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.

Korea Defense (Simon Han)

What’s new in Korea defense? Timing debate persists, pipeline broadens beyond ME - NATO

summit/CPSP next catalysts

Korea defense & shipbuilding shares were weaker this week (Hanwha Aerospace -10%, LIG D&A -15%, Hyundai Rotem -19%,

KAI -2%, Hanwha Ocean -23%, HHI -15% vs. KOSPI -7%) as investors looked for clearer order conversion following the US–

Iran MOU signing (18 Jun) but saw limited incremental visibility. Some buy-side conversations appear to be shifting beyond the