LIG Nex1 to post record earnings on missile exports in 2022

LIG Group Chairman Koo Bon-sang and the Cheongung-II [Source : LIG Nex1]

Sales of LIG Nex1, a South Korean defense company, are expected to exceed a record 2 trillion won ($1.58 billion) under the leadership of LIG Group Chairman Koo Bon-sang who has focused on market expansion overseas and R&D strategy.

The company’s full-year revenue for 2022 is estimated to reach 2.17 billion won, up 18.9 percent from the previous year, according to a market consensus polled by FnGuide on Tuesday.

The sales increase was driven especially by a $2 billion massive deal to provide the Cheongung-II mid-range surface-to-air missile system to the United Arab Emirates (UAE). The deal marked the first sale of the home-developed multi-layered anti-missile system to a foreign country.

Cheongung II is key to the Korean missile defense system, and LIG Nex1 participated in the program to develop the system along with Korea’s other defense companies.

LIG Nex1’s order backlog is increasing significantly driven by arms export deals. The figure grew from 5.65 trillion won in 2018 to 8.31 trillion won last year, and it is expected to hit 11 trillion won this year.

The company’s strong performance is credited to Chairman Koo. Under his leadership, LIG Nex1 has put efforts to advance into overseas markets. In 2009, a local office was established in the United States, the world’s largest defense market. Since then, it has been operating a dedicated organization for exports while adding overseas operations in Latin America (2011), Indonesia (2013), Saudi Arabia (2016), and the UAE (2016). Recently, it is focusing on the Southeast Asian market.

Chairman Koo has also supported scientists and engineers, nearly doubling R&D investment over the past five years.

LIG Nex1 is also expanding its presence in the private sector with new business related to global positioning via satellite and 5G mobile communication.

LIG Nex1 will invest more than 1 trillion won in space development by 2025, including investing 240 billion won in independent satellite development, said a company official.