96% of Iranian attacks intercepted: Foreign media hail "low-cost Patriot rival Cheongung-II" as biggest winner of the war

According to Financial News, the Cheongung-II medium-range surface-to-air missile system, a domestically developed air-defense weapon that achieved a 96% interception rate in the war involving the Islamic Republic of Iran (Iran), has drawn global attention. Foreign media report that the K-Defense Industry is emerging as one of the biggest beneficiaries of the current conflict thanks to the system’s performance.

On the 11th (local time), the Financial Times (FT) reported, "The war with Iran has propelled South Korean defense companies that offer a cheaper rival to the MIM-104 Patriot system into the spotlight," adding, "The combat-proven success of LIG Nex1’s Cheongung-II medium-range surface-to-air missile system is expected to drive up global demand for South Korean defense technology."
The Cheongung-II medium-range surface-to-air missile system performs a role similar to the U.S.-made medium-range interceptor system MIM-104 Patriot and had never been used in actual combat before this conflict. It is now being credited with demonstrating outstanding performance in the field. The system has been sold to the United Arab Emirates (UAE), as well as to the Kingdom of Saudi Arabia (KSA) and the Republic of Iraq.
According to Yoo Yong-won, a member of the National Defense Committee of the National Assembly from the People Power Party (PPP), two Cheongung-II medium-range surface-to-air missile system batteries deployed in the UAE fired around 60 interceptor missiles and achieved an interception success rate of 96%. Following reports of this performance, the share price of LIG Nex1, which manufactures the Cheongung-II medium-range surface-to-air missile system, jumped nearly 47% compared with late February, before the outbreak of the war involving Iran, as markets reacted swiftly.
FT also noted that the success of the Cheongung-II medium-range surface-to-air missile system shows how South Korean defense companies are increasingly operating as a single ecosystem. The system consists of four launcher vehicles, each equipped with eight launch tubes, a multifunction radar, and an engagement control system (ECS). LIG Nex1 produces the missiles and the integrated system, Hanwha Systems supplies the radar, and Hanwha Aerospace manufactures the launchers and vehicles.
Its relatively low price and rapid production capability are cited as key competitive advantages of the Cheongung-II medium-range surface-to-air missile system. FT explained that while each interceptor of the Patriot Advanced Capability-3 (PAC-3) missile produced by Lockheed Martin Corporation costs about 3.7 million dollars (around 5.4 billion won), a Cheongung-II interceptor costs roughly one-third of that, at about 1.1 million dollars.

In addition, unlike the PAC-3 missile, which can take four to six years to deliver, manufacturers of the Cheongung-II medium-range surface-to-air missile system are rapidly ramping up production. Hwang Eo-yeon, an analyst at Nomura Securities, predicted, "LIG Nex1 will be able to increase its output within nine to twelve months by operating two shifts."

FT also introduced the term "K-Defense Industry," used to describe South Korea’s defense sector, and noted that it "has flourished in recent years on the back of a global rearmament boom." In fact, according to the Stockholm International Peace Research Institute (SIPRI), South Korea is the world’s ninth-largest arms exporter, with a 3% share of the global market.
From 2020 to 2024, 53% of South Korea’s defense exports went to Europe, and Poland accounted for 46% of that European share. After the outbreak of the war in Ukraine, Poland purchased K2 Black Panther main battle tanks from Hyundai Rotem, K9 Thunder self-propelled howitzers from Hanwha Aerospace, and FA-50 fighter jets from Korea Aerospace Industries (KAI).
The value of South Korean defense companies is also drawing attention in the stock market. FT reported that the share prices of major defense firms such as LIG Nex1, Hanwha Aerospace, Hyundai Rotem, and KAI have surged several-fold over the past year.
bng@fnnews.com Kim Hee-sun Reporter