After North Korea revealed preparations to launch its first-ever military surveillance satellite, defense stocks in South Korea and Japan soared.
Pyongyang Will Launch a Satellite to Spy on the US and Its "Dangerous" Activities
Ri Pyong Chol, a military official in North Korea, said on Monday, May 29, that Pyongyang would launch a satellite to monitor what he called the US' "dangerous" acts, such as its recent joint military maneuvers with South Korea, CNBC reported.
This, according to North Korea, "fully proves how the enemy is making preparations for the military act of aggression on the DPRK," referring to the country's formal name, the Democratic People's Republic of Korea.
The satellite is set to be launched in June, according to AP News. Ri claims it will be crucial for keeping tabs on the US and its vassal forces as they engage in reckless acts of military aggression and preparing for them in advance.
"Under the present situation brought by the reckless military acts by the US and South Korea, we steadily feel the need to expand reconnaissance and information means and improve various defensive and offensive weapons and have the timetables for carrying out their development plans," he added.
Investment in Defense Sees a Boost in Stock Prices
According to CNBC, investors of South Korean military firms Firstec and Victek saw their share prices increase by 3.8% and 3.3%, respectively, when trading resumed Tuesday, May 30, following a holiday Monday. Additionally, Korea Aerospace Industries gained 0.6%.
Hosoya Pyro-Engineering, a Japanese military business, rose by 1.11%, while Mitsubishi Electric Corp climbed by 0.16%.
Japan's Ministry of Defense has issued a stern warning, saying the country would take all necessary measures to destroy any North Korean missile that lands on Japanese soil, citing Pyongyang's frequent ballistic missile tests as a danger to regional and global stability.
Possible ICBM Trial Is About To Occur, Says Expert
Professor Stephen Nagy from International Christian University told CNBC that the launch might be an intercontinental ballistic missile (ICBM) test. He added that this would show North Korea's increased capabilities to target US forces, not just in the Pacific but also on the mainland.
As the focus of Washington's foreign policy remains on China and Taiwan, Nagy said that he believes the most recent declaration from Pyongyang is a signal from North Korea to the US to take the nation more seriously and to return to the bargaining table.
"North Korea has been under heavy sanctions for years and it's still engaged in provocative behavior and this leads to the question of, do we need a new strategy and who do we work with ... I just don't think there's an easy solution as we move forward on this problem," Nagy stated.
