South Korea's Defense Export Growth: A Success Story

Making a breakthrough is not easy, and South Korea's success story in the export market of weapons systems resulted from a whole range of factors. Uk Yang , a research fellow at the Seoul-based Asan Institute, has outlined four of them.

According to him, the first one is world-class performance.

“The advanced technologies of Korea's civilian industry are now being applied to the development of weapons systems, enabling the development of world-class weapons systems,” Yang told this author.

Secondly, this Asian nation has the advantage of being able to offer battle-tested military products.

“South Korea's weapons systems are developed to counter the North Korean threat and continue to be upgraded even after they enter the frontline,” he noted.“They have also been used in actual engagements with North Korea and have achieved outstanding results.”

The third strength lies in affordability.

“South Korea operates 500,000 troops against the North Korean threat, so the South Korean military has achieved economies of scale,” the expert said.“This allows it to mass-produce advanced weapons, which can be purchased at relatively affordable prices.”

And, finally, a rapid production schedule has also contributed to the success.

“In order to meet the steady demand of the South Korean military,” Yang said,“the South Korean defense industry maintains large-scale production facilities, which allows for faster delivery compared to companies in the United States and Europe.”

The country's defense industry manufactures a wide range of products, including land, naval, air and space systems. This includes, among other things, light weapons, ammunition, tanks, surface combatant vessels, submarines, combat aircraft, multi-purpose satellites, space launchers and ballistic missiles.

Remarkably, the bulk of this equipment is made by six domestic producers, through joint ventures between private companies and government agencies. Apart from being a source of initial demand for defense industry products, the government also provides financial services for South Korean arms exporters to promote international sales. And recent projects have proven that the country is becoming a serious player in the global defense market.

In April, a delegation of Polish defense officials visited Seoul to ink a $1.6 billion contract for the purchase of multi-barreled missile launchers. Two years earlier, South Korea and Poland signed a framework agreement, under which a major arms export deal worth $12.4 billion was concluded. That included exports of missile launchers, tanks, light combat aircraft and self-propelled howitzers.

In the Middle East, Seoul is strengthening ties with Qatar, Saudi Arabia and the UAE. Specifically, the Saudi Arabia trip of South Korea's Defense Minister Shin Won-sik earlier this year resulted in a $3.2 billion deal. The two nations agreed on Riyadh's purchasing the Cheongung II – a surface-to-air missile system capable of intercepting ballistic missiles and aircraft at a 40-kilometer altitude.

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Closer to home, South Korea's chief of the state arms procurement agency, Seok Jong-gun, met with his Malaysian counterparts in May to discuss ways to deepen arms industry cooperation. Last year, Malaysia had already chosen Korea Aerospace Industries (KAI) to supply 18 FA-50 Block 20 fighters for $920 million. Now, the partners are set to negotiate another batch to be supplied no later than in 2027.

It is worth noting that, compared with the Block 10 variant, which is owned by the South Korean Air Force itself, the Block 20 is a more advanced one. The aircraft is equipped with a modern radar system and can be used to conduct beyond-visual-range air-to-air missions.

Why defense exports matter to South Korea

Foreign commerce is a major source of the country's outstanding economic growth, accounting for a high percentage of GDP. As an export-oriented nation, South Korea benefits from foreign trade diversification, and the international sales of domestically produced weapons systems are a shining example of that. Not only have its defense exports seen growth in sales figures, but the customer base and product range have been expanding, too.

Not least important is a matter of national security. Through lucrative deals and overseas orders, arms exports contribute to the development of the domestic defense industry, increasing the country's military capacity. This is particularly relevant in the case of South Korea, a country that has to deal with an ongoing threat and unpredictability emanating from its northern neighbor.

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