The core of this cooperation is the completion of a ‘multi-layer air defense solution’ that combines LIG D&A’s proven mid- and long-range surface-to-air missile system with Rheinmetall’s strength, ultra-short-range air defense capabilities. The two companies established a strategy to provide a one-stop integrated air defense system required by the European market by combining their respective technological strengths to build a dense defense network ranging from ultra-short range to long range. This strategic partnership is in line with the needs of European countries, where the modernization of defense systems has become urgent due to the rapid increase in aerial threats such as drones and missiles following the Ukraine War. In particular, as the supply bottleneck of existing Western weapons systems such as Patriot and THAAD has recently worsened, LIG ​​D&A's rapid production and delivery capabilities are evaluated as a very attractive alternative to European countries.

LIG D&A's expansion into Europe goes beyond a simple business agreement and aims to penetrate the all-round market encompassing local production and sales. The two companies are in-depth discussing the establishment of a joint venture (JV) in Europe, which is an expression of their strong will to overcome the high barriers of technology transfer and localization and enter the core of the European defense industry ecosystem. In addition, the plan is to maximize competitiveness in order receipt in the European market by jointly developing new short-range air defense missiles and strengthening all-round cooperation in research and development (R&D) and marketing. This can be interpreted as LIG D&A's meticulous strategy of establishing a local business foundation by opening a European office in Munich, Germany, has finally begun to bear fruit.

Meanwhile, it is also worth noting that while expanding the external market, we have secured an unwavering growth engine internally through harmony between labor and management. LIG D&A recently reaffirmed the trust between labor and management by reaching an early conclusion on the 2026 wage and collective agreement, which aims to utilize 12% of operating profits as performance bonus resources. This is the management's decision to transparently share the achievements of the defense industry boom with employees and the result of internal solidarity to take the company to the next level in celebration of its 50th anniversary. Through this agreement, labor and management promise to foster mutual respect, strengthen corporate competitiveness, and create a safe working environment, and have established a solid internal organizational capacity to respond to the rapidly changing global defense industry environment.

The market reaction is also very enthusiastic. As soon as the cooperation with Rheinmetall became official, LIG ​​D&A's stock price soared, reflecting investor expectations that the company had secured a new growth engine in the European market following good news from the Middle East. Experts analyze that demand in the defense industry has not decreased even after the end-of-war agreement between the United States and Iran, but rather is moving toward a more sophisticated and modernized air defense system. In particular, companies with proven air defense solutions, such as LIG D&A, are expected to see their prices soar further as the global security environment changes in the future. Now, K-Defense will go beyond being a simple arms exporter and will play a central role in the global defense landscape as a key partner protecting Europe's skies.