LIG Nex1 eyes $3.7 billion investment, exports to 30 countries by 2030

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LIG Nex1 eyes $3.7 billion investment, exports to 30 countries by 2030

Published: 24 Sep. 2024, 10:11

KIM JEE-HEE
kim.jeehee@joongang.co.kr

LIG Nex1 CEO Shin Ick-hyun presents the company's goals during an event held for the press and investors at the company's Pangyo office in Gyeonggi on Monday. [LIG NEX1]

Korean defense firm LIG Nex1 on Monday unveiled a plan to invest 5 trillion won ($3.7 billion) and export its products to 30 countries by 2030, backed by an expanded antimissile and unmanned weapons systems lineup.

LIG Nex1 CEO Shin Ick-hyun laid out the plan in an event for the press and investors, just days after the defense firm secured a 3.7 trillion-won contract with Iraq to export its Cheongung-II medium-range surface-to-air missile defense system.

"From this year, we will invest 5 trillion won in technology, infrastructure and merger and acquisitions," he said, adding the company plans to allocate 1.5 trillion won each for investment in infrastructure and research and development (R&D), and another 2 trillion won for capital investment.

"From a revenue of 2.3 trillion won in 2023, we will grow into a company with 10 trillion won in revenue by 2030. I believe this is very much feasible."

Shin pointed out that while the Korean defense industry has been on a boom in recent years, especially after the outbreak of Russia's war in Ukraine, most of the exports have been limited to major weapons systems and a number of export countries.

The Cheongung-II ground-to-air missile with ballistic missile interceptor capability [DEFENSE ACQUISITION PROGRAM ADMINISTRATION]

"It has mostly been centered in Asia and the Middle East, but with the war in Ukraine, the market expanded to Eastern Europe. Now on the back of unmanned systems, we plan to expand such exports to countries, including the United States," Shin said.

To meet this goal, the company said it plans to increase the number of countries to which it exports to 30 from the current 11 and raise its proportion of overseas sales to around half of its total sales by 2030.

When asked about potential deals with additional countries, Shin said the company aims to export to countries such as Indonesia, as well as those in northern Africa and Eastern Europe, but declined to elaborate.

Product-wise, Shin said the company will focus on beefing up its air defense systems as well as unmanned technologies that could be applied to vessels and robots for land forces.

Yonhap