HighGrowth investors / ages 30-50
K-Defense Concentrated Portfolio
Aggressive Korean defense-sector portfolio riding export cycles (Poland, Romania, Australia, Middle East) and the European rearmament super-cycle. Built around Hanwha Aerospace, Hyundai Rotem, LIG Nex1, and Hanwha Systems.
Expected Return
15-25% annually
Expected Dividend
1.0%
Rebalancing
Quarterly
Asset Allocation
012450 (35%)
064350 (25%)
079550 (20%)
272210 (20%)
KR012450Hanwha Aerospace
Global leader in K9 self-propelled howitzers and Chunmoo MLRS; European rearmament and Middle East demand are driving ~KRW 4T operating profit
35%
KR064350Hyundai Rotem
Main beneficiary of K2 tank exports to Poland and Romania with European main battle tank replacement cycle
25%
KR079550LIG Nex1
Expanding Cheongung-II missile exports to Middle East with high-margin precision-guided weapons focus
20%
KR272210Hanwha Systems
Defense ICT and satellite systems within Hanwha defense chain; beneficiary of LEO satellite and unmanned systems
20%
Advantages
- ✓Direct exposure to global defense super-cycle with multi-year backlog
- ✓Structural tailwinds from export guarantees and government policy
- ✓Higher upside volatility vs. diversified defense ETFs
Risks
- !Sharp correction risk if geopolitical tensions ease
- !Delivery delays, FX fluctuations, raw material cost risk
- !High concentration exposes portfolio to single-name events
Allocation by Investment Amount
₩1,000,000
012450₩350,000
064350₩250,000
079550₩200,000
272210₩200,000
₩5,000,000
012450₩1,750,000
064350₩1,250,000
079550₩1,000,000
272210₩1,000,000
₩10,000,000
012450₩3,500,000
064350₩2,500,000
079550₩2,000,000
272210₩2,000,000