LIG Nex1 Co. clinched leadership of South Korea’s next-generation missile defense system, edging out longtime competitor Hanwha Systems Co. in one of the country’s most significant defense contracts.
South Korea’s Defense Acquisition Program Administration awarded LIG Nex1 control over eight development programs for the Cheongung III project, worth approximately 3 trillion won ($2.2 billion). The system represents Seoul’s attempt to build a Korean equivalent to Israel’s Iron Dome technology.
The decision puts LIG Nex1 in charge of developing the engagement control system — the command unit that determines interception protocols. The company will also manufacture the interceptor missiles themselves, cementing its position in South Korea’s expanding defense sector.
Competition between the firms proved intense, with LIG Nex1 winning by just 0.1 point in the final evaluation, according to industry sources. Hanwha Systems retains responsibility for radar and launcher development, continuing roles it held in the current Cheongung II system.
The Cheongung III system aims to intercept threats at altitudes up to 15 kilometers with a 40-kilometer range. South Korea plans completion by 2034, integrating the system into its national missile defense network as tensions with North Korea persist.
LIG Nex1 also secured a separate 500 billion won submarine upgrade contract in partnership with HD Hyundai, defeating another Hanwha bid. The wins underscore LIG Nex1’s growing dominance in South Korea’s defense modernization drive, particularly in command-and-control technologies that serve as the backbone of missile defense systems.
The contracts reflect South Korea’s broader push to develop indigenous defense capabilities while reducing dependence on foreign suppliers. Seoul has accelerated missile defense development following repeated North Korean weapons tests and growing regional security concerns.
