This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Poongsan Corporation derives approximately 30% of its revenue from its defense division, which specializes in the production of ammunition. The company is a recognized arms producer, listed among South Korea's top defense contractors, and its military products constitute a material portion of its business. Its ammunition is supplied to major military customers, including the United States Army, which purchased 200,000 rounds from Poongsan in 2023.
The company manufactures small-caliber ammunition, including components for AR-15 rifles, and has been identified as a significant source of ammunition recovered from crime scenes in the United States. Poongsan has also established defense export agreements with countries including Poland, Saudi Arabia, and Jordan. The company's strategic focus includes expanding its ammunition production capacity, with plans cited to produce 100 million rifle shells annually. While Poongsan is also a major copper smelter, its defense operations are a core and specialized business line, not an incidental sale of dual-use goods.
Research Sources
1 organization
Related Exclusions
Wondering what we do invest in?
The Naughty List
A digest of changes to our exclusion list — new additions, removals, and the evidence behind them. We review the list continuously as new evidence surfaces.
Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
Ethical Capital LLC is a state-registered investment adviser in Utah (CRD #316032). Registration does not imply a certain level of skill or training.