North Korea Tests Cruise Missiles
Analysis based on 14 articles · First reported Dec 29, 2025 · Last updated Dec 29, 2025
The missile tests by North Korea, coupled with its advancements in nuclear submarine technology, increase geopolitical tensions in the region, potentially leading to increased defense spending by South Korea and the United States. This could positively impact defense contractors but introduce uncertainty into broader Asian markets due to heightened security risks.
North Korea conducted long-range strategic cruise missile tests off its west coast on Sunday, December 28, under the supervision of Kim Jong Un. These tests were aimed at verifying the country's nuclear deterrence capabilities. This event follows recent progress in the construction of North Korea's first nuclear-powered submarine and previous tests of anti-air missiles. While cruise missile tests are not banned by International — United Nations Security Council resolutions, they pose a significant threat to South Korea and the United States due to their maneuverability and low-altitude flight. Analysts suggest these missiles could target US warships and aircraft carriers in a conflict. Experts believe North Korea's recent military advancements may be supported by technological transfers from Russia, in exchange for North Korean military aid to Russia's war in Ukraine. Kim Jong Un's focus on expanding North Korea's nuclear arsenal since the collapse of diplomacy with Donald Trump in 2019 is seen as an effort to gain leverage in future negotiations.
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