Seoul: South Korean defense company LIG Defense and Aerospace Co. (DandA) announced on Thursday a 24.4 percent drop in its net profit for the second quarter compared to the same period last year. The decline is attributed to higher financing costs stemming from increased investment spending.

According to Yonhap News Agency, the company's net profit for the April-June period was recorded at 78.2 billion won (US$55.1 million), a decrease from the previous year's 103.5 billion won. However, the company's operating profit saw a 29.5 percent increase, reaching 105.7 billion won, while revenue rose by 17.4 percent to 1.11 trillion won during the same period.

LIG DandA reported an order backlog of 24.57 trillion won by the end of the second quarter. The company, formerly known as LIG Nex1, cited that the decrease in net profit resulted from higher financing costs linked to increased investment spending.

The company also highlighted a surge in sales within its guided weapons division, notably due to the mass production of the Cheongung-II medium-range surface-to-air missile system. Growth was also observed in other key segments like avionics and electronic warfare (AEW), as well as intelligence, surveillance, and reconnaissance (ISR).

In its efforts to bolster global presence, LIG DandA has inaugurated a representative office in Peru and entered a strategic partnership with Britain's Babcock.