Best Defense
The Korea Institute for Industrial Economics and Trade said in its report on March 27 that the global defense and arms procurement budgets are estimated to increase by US$2 trillion and US$600 billion from 2023 to 2032, respectively.
“Another arms race is ongoing across the world after the outbreak of the war in Ukraine and this rapid increase in demand in the industry can be an opportunity for South Korea in that it is one of those few that are reliable in terms of quality, punctuality, after-sales support, and so on,” it said.
South Korea is aiming to become the fourth-largest exporter in the industry by 2027. “The United States is currently short of missiles and ammunition and the major exporters, including Germany, the United Kingdom, France and Italy, are failing to meet foreign client demands with a lot of their weapons supplied to Ukraine,” it explained, adding, “South Korea needs to accelerate market penetration in order to achieve its goal.”
Last year, South Korean arms suppliers’ new contracts hit an all-time high of US$17.3 billion. This year, South Korea signed a 1.2 trillion won (US$925 million) contract with Malaysia regarding the FA-50 light combat aircraft, 300 billion won (US$231 million) with Türkiye for K-2 tank engine supply, and so on, and its arms exports are expected to reach a new high again.