South Korean Shares Close Lower on Profit-Booking; Hanwha Aerospace Loses Over 1% Despite New DAPA Deal

South Korean shares closed lower on Friday, breaking a three-day winning spree as investors sought to book profits following the consecutive gains.

The Korea Composite Stock Price Index or Kospi fell 60.32 points, or 1.5%, to end at 3,926.59. The Kosdaq increased by 32.61 points, or 3.7%, to close at 912.67.

In economic news, South Korea's overall industrial output decreased 2.5% in October, following a 1.3% gain in the previous month, according to data from Statistics Korea released Friday.

The public administration index rose in October from the prior month, while that for the mining & manufacturing industries, construction, and service industries declined.

Total industrial production decreased by 3.6% in October from the same month last year, after a 6.9% yearly gain in September.

In corporate news, Hanwha Aerospace (KRX:012450) secured a 705.4 billion won contract from the Defense Acquisition Program Administration (DAPA) for the mass production of L-SAM launchers and anti-ballistic missiles (ABMs).

The deal is equivalent to 6.28% of the company's consolidated sales in 2024.

The contract period runs from Nov. 27, 2025, to Dec. 31, 2030, with payments to be made every year, according to the government's installment schedule, the filing said.

Shares of Hanwha Aerospace fell more than 1% at market close.