K-defense firms build virtuous cycle of orders, profits and jobs as headcount rises 17% in a year

South Korea's defense industry has been racking up record orders amid surging rearmament demand following the Russia-Ukraine war — and the growth is now showing up in hiring. Headcount at major defense firms has expanded alongside their balance sheets, and companies that disclosed pay data show average salaries rising in step.

Observers say a virtuous cycle is taking hold in the sector: stronger order books drive better earnings, which fuel hiring and higher wages, and the resulting improvement in operational capacity feeds back into winning more contracts.

The latest sustainability reports from four major defense companies — Hanwha Aerospace, Hyundai Rotem, LIG Defense & Aerospace and Korea Aerospace Industries — show combined new hiring and total headcount both posted double-digit growth over the past two years.

Hanwha Aerospace's total workforce grew from 6,819 employees in 2023 to 8,172 in 2025. Over the same period, Hyundai Rotem expanded from 3,923 to 4,562, LIG Defense & Aerospace (LIG D&A) from 4,360 to 5,631, and Korea Aerospace Industries (KAI) from 5,098 to 5,235. Combined, the four companies employed about 23,600 people in 2025, up roughly 16.8 percent from 20,200 in 2023.

New hiring figures tell a similar story. Hanwha Aerospace brought on 1,332 new employees in 2025, up from 844 in 2023. LIG D&A increased new hires from 723 to 846, and KAI from 375 to 519. Hyundai Rotem was the exception, with new hires falling from 666 to 571. Still, combined new hiring across the four firms rose 25.3 percent, from 2,608 in 2023 to 3,268 in 2025.

Among companies that disclosed pay data, LIG D&A's average salary per employee rose from 96 million won ($62,000) in 2023 to 108 million won last year. At Hyundai Rotem, average compensation for all employees excluding the CEO climbed from 103 million won in 2023 to 120 million won in 2025.

Hanwha Aerospace reported total compensation — base pay plus variable pay — for male managers rising from 114 million won in 2023 to 142 million won in 2025, while female managers saw their pay increase from 98 million won to 118 million won over the same period. For non-managerial staff, male employees' total compensation rose from 83 million won to 114 million won, and female employees' from 54 million won to 86 million won.

Meanwhile, the four defense companies are expected to post a combined second-quarter operating profit in the 1.5 trillion won range — a record — marking a fifth consecutive quarter above 1 trillion won since the second quarter of last year. Hanwha Aerospace is drawing particular attention as it could join the "1 trillion won club" on a quarterly basis for the first time. According to financial data provider FnGuide, the consensus estimate among securities analysts puts Hanwha Aerospace's second-quarter operating profit at 1.02 trillion won.

Hyundai Rotem is forecast to post second-quarter operating profit of 270.2 billion won, LIG D&A 105.5 billion won, and KAI 104.5 billion won. The four companies' combined forecast of 1.5 trillion won would represent an 11.7 percent increase from the 1.34 trillion won they earned in the same period last year. The group first surpassed 1 trillion won in combined annual operating profit in 2023, then broke through that mark on a quarterly basis for the first time in the second quarter of last year.