South Korean defense stocks tumbled in early trading Friday amid growing speculation that the war in Ukraine could be nearing an end.

As of 9:18 a.m., Poongsan was down 1.26 percent at 125,400 won ($92.78) on the main bourse. Hyundai Rotem slid 2.64 percent, Hanwha Aerospace fell 3.43 percent, LIG Nex1 plunged 12.77 percent, Hanwha Systems dropped 2.82 percent, and Korea Aerospace Industries (KAI) declined 1.60 percent.

Analysts say the pullback may reflect profit-taking after recent rallies, compounded by reports suggesting a possible diplomatic breakthrough in the Russia–Ukraine conflict.

The New York Times reported Wednesday that U.S. President Donald Trump is seeking to hold a summit with Russian President Vladimir Putin as early as next week, followed shortly by a trilateral meeting with Ukrainian President Volodymyr Zelenskyy.

The Kremlin also confirmed Thursday night that Putin and Trump had agreed to meet within days.

Shares of Poongsan closed 3.94 percent lower at 122,000 won on Friday. Hyundai Rotem ended 4.87 percent lower at 183,500 won, Hanwha Aerospace 5.47 percent lower at 881,000 won, and LIG Nex1 14.93 percent lower at 513,000 won.

Hanwha Systems finished at 52,800 won, down 6.88 percent and KAI at 90,800 won, down 2.89 percent.

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