Ideas
Palantir likely to surge.
US defense and security companies are surging as Trump's aggressive foreign policy creates demand for weapons and surveillance; Palantir is hesitating but is likely to surge as well.
Air-defense demand favors LIG Nex1.
Countries with limited ground forces and valuable oil infrastructure, especially in the Middle East, must rely on air-defense networks; they have been buying LIG Nex1 systems such as Cheongung, and demand should increase as leaders fear surprise attacks.
Rheinmetall rally lacks capacity.
Rheinmetall's rally is not meaningful because European production facilities are outdated, skilled workers are scarce, and tank orders take about four years to fulfill. Europe is slow to expand capacity, so it cannot quickly meet rearmament demand, making Rheinmetall less attractive than Korean defense producers.
Buy and hold Korean defense.
The Venezuela invasion and US withdrawal from international organizations signal a new era where powerful countries can attack weaker ones, forcing many nations to build air-defense and conventional forces. Korea already has a wartime production base and faster delivery than Europe, and is winning or awaiting contracts from Poland, Peru, Iraq, and Romania, so defense stocks should be bought and held, with ceasefire-driven dips treated as opportunities.
Buy defense leader Hanwha Aerospace.
Hanwha Aerospace is the defense leader; its valuation has fallen from 35-40x P/E to around 20-23x while earnings estimates keep rising, with 2025 net profit seen at 3.49 trillion won and 2026 at 4.3 trillion won. Pension funds and foreigners have been buying while retail investors rotated into semiconductors, and if investors do not know which defense stock to pick, they should buy the leader.
Shipbuilders are defense plays.
Hanwha Ocean and Hyundai Heavy Industries should be viewed as defense stocks, not just shipbuilders. The key drivers are US Navy construction, changes in US law, Hanwha Ocean's expansion of Philly Shipyard and possible acquisitions, and Hyundai Heavy's potential US shipyard acquisition; LNG carrier orders alone have not moved the stocks, but defense-related order news can produce a third-year last-flame move. He suggests buying one of the two rather than spreading across too many shipbuilders.
i3system rebound after deep correction.
i3system is the only small and mid-cap idea he is watching; its thermal imaging products are used in defense, space, and robotics, margins have improved since 2023, and the valuation is only around 17-20x rather than 40-50x. After falling about 50%, the stock is positioned for a rebound toward its prior high, though position sizing should be small.
Hyundai Rotem has order upside.
Hyundai Rotem has a large Peru contract plus Iraq and Romania pipelines, but the stock has not made new highs and has been less burdened than Hanwha Aerospace. As the defense leader makes new highs, laggards with order momentum can re-rate.
Buy HVM on SpaceX-driven pullback.
HVM makes heat-resistant and impact-resistant special-metal materials and supplies about 80% semi-finished products to SpaceX, which keeps the final 20% finishing step; SpaceX's roughly 170 launches a year create large volume demand. HVM also has Tesla-related sales, but the stock is overbought now, so he would buy on a correction toward the 50,000-won range.
SPG is HVM-linked pair.
SPG is tied to HVM as a distributor and partner and could benefit if HVM expands its business scope, but it currently earns little because its role is distribution; he sees it as an acceptable pair with HVM rather than a primary pick.
Only profitable satellite maker Satrec.
Satrec Initiative is a Hanwha Group satellite maker and the only satellite manufacturer among roughly a dozen global peers to turn profitable, reporting a 2025 turnaround while most European satellite makers remain loss-making. He likes it and would buy on a pullback below 100,000 won.
Watch SeAH on SpaceX chain.
SeAH Besteel Holdings is trying to enter the SpaceX special-metal value chain and plans a US plant; its low PBR and holding-company discount are supportive, but the core steel business is weak and it is uncertain whether it can actually join the supply chain, so it is a watch-and-buy-on-pullback idea rather than a core pick.
This 815 Money Talk (815머니톡) video, published January 11, 2026,
features Lee Kwon-hee
discussing PLTR, 079550.KS, RHM.DE, Korean defense sector, 012450.KS, 042660.KS, 329180.KS, 214430.KQ, 064350.KS, 295310.KQ, 058610.KQ, 099320.KQ, 001430.KS.
12 trade ideas extracted by AI with direction and confidence scoring.
Speakers:
Lee Kwon-hee
· Tickers:
PLTR,
079550.KS,
RHM.DE,
Korean defense sector,
012450.KS,
042660.KS,
329180.KS,
214430.KQ,
064350.KS,
295310.KQ,
058610.KQ,
099320.KQ,
001430.KS
