Citi Research expresses optimism about defense stocks, claiming they are undervalued despite recent market downturns linked to uncertainty over defense spending and politics. Analyst Jason Gursky emphasizes the potential growth in the sector amid rising international military budgets and specific U.S. defense plans.

South Korean defense stocks experienced significant gains in line with global trends due to heightened security concerns stemming from the Russia-Ukraine war, with notable increases in companies like Hanwha Aerospace and Hyundai Rotem.