The Korean defense industry is accelerating its penetration of the global defense market with powerful weapon systems and differentiated technological competitiveness. For example, major Korean defense companies posted record exports of US$17.3 billion in 2022 and are on track to reach US$20 billion this year.
The Yoon Suk-yeol administration has also picked the defense industry as one of Korea’s new future growth drivers. It announced a plan to make Korea one of the world’s top four defense exporters by 2027, following the United States (40 percent global share), Russia (16 percent), and France (11 percent) in order to actively supporting the Korean defense industry. Considering that China, currently ranked fourth, has a global share of 5.2 percent, Korea will be able to achieve the goal, experts say.
The Seoul International Aerospace & Defense Exhibition (Seoul ADEX 2023), which opened on Oct. 17, is expected to serve as a springboard for Korean companies looking to join the club of the top four in the world defense industry.
Held in conjunction with the 75th anniversary of the Korean Army and the 70th anniversary of the Korea-US Alliance, the Seoul ADEX 2023 is the largest ever, attracting 550 exhibitors from 35 countries around the world. The numbers of participating countries and exhibitors increased by 20 percent, and the size of the indoor exhibition hall by 17 percent from 440 exhibitors from 28 countries in the same event held two years ago.
On the opening day of Seoul ADEX 2023 the venue bustled with people. A row to the venue alone was more than 100 meters long, and even after entering the venue, visitors often had to wait in line. In particular, foreign visitors, including military and government officials from various countries moved at the venue, confirming the heightened status of the Korean defense industry.
With 550 companies from 35 countries participating, this year’s Seoul ADEX was the largest ever, showcasing more than 100 types of aerospace weapons, including Korean aircraft such as the Korean KF-21 fighter and FA-50 light attack aircraft, and various ground weapons, including the Redback combat infantry fighting vehicle (IFV). The Redback was the preferred choice for the Australian Army in a next-generation armored vehicle procurement project. The Seoul ADEX organizer is expecting more than 300,000 visitors for six days until Oct. 22.
This year the number of foreign delegations is the largest ever, with 114 people from 55 countries. They include defense ministers from nine countries including Malaysia, Australia, and Iraq, and air force chiefs of staff from 14 countries and representatives of overseas defense companies. Therefore, Seoul ADEX 2023 is expected to be a truly global event in name and reality.
“The amount of exports and business deals at Seoul ADEX 2023 is expected to reach US$25 billion, an increase of US$2 billion from 2022,” said a member of the organizing committee.
Korean defense contractors’ recent export growth is also recognized as remarkable around the world. According to the Stockholm International Peace Research Institute (SIPRI), Korea accounted for 2.4 percent of the global arms export market in the 2018-2022 period. During this period, Korea’s export growth rate hit 74 percent, ranking the country first among the world’s top 10 defense exporters. Prior to 2020, Korea’s average annual exports were in the range of US$2.5 billion to US$3.5 billion, but the country enjoyed explosive growth in recent years.
Korean defense contractors will also focus on expanding into new markets. At Seoul ADEX 2023, Korea Aerospace Industries (KAI) held face-to-face meetings with overseas government officials and customers from Europe, North America, South America, and Asia to sign memoranda of understanding (MOUs) on technology alliances and business partnerships for future businesses.
A project to introduce self-propelled artillery guns to Romania is estimated to be worth 1 trillion won (US$736 million). An order for the project is expected to be awarded as early as this year. Hanwha Aerospace’s K9 self-propelled howitzer and Germany’s PzH2000 howitzer were named as finalists. If Hanwha Aerospace is selected as the winner, Romania will become the ninth country to import the Korean K9 self-propelled gun and tenth country to deploy it.
In addition to Hanwha Aerospace, Korea Aerospace Industries (KAI) and Hyundai Motor Group, Korean defense companies such as LIG Nex1, Korean Air, SNT Dynamics and SNT Motiv, and international defense companies such as Boeing, Lockheed Martin, Airbus, and BAE Systems, set up their own pavilions to showcase their technologies and visions at the ADEX 2023 in Seoul.
Hanwha Group opened an integrated pavilion that shows the defense capabilities of its major affiliates including Hanwha Aerospace, Hanwha Systems, and Hanwha Ocean. In particular, the thruster of the Nuri, Korea’s first domestically built space launch vehicle, was put front and center to emphasize Hanwha Group’s vision of going to space beyond land, sea, and air.
Hyundai Motor Group’s integrated pavilion that includes Kia Crop., Hyundai Rotem, and Hyundai Wia was packed with visitors from all over the world. Supernal, Hyundai’s U.S. urban air transportation (UAM) subsidiary, also participated and unveiled a concept model of a new UAM airframe under development for the first time in Korea. Supernal wants to launch the new UAM airframe in 2028.
KAI’s pavilion, organized under the theme of “Skyways and Space,” saw senior officials from the air forces of major countries such as the United States, Canada, Qatar, Malaysia, the Philippines, Poland, and Singapore visit KAI’s new technology products on this day alone. At the LIG Nex1 pavilion, military officials from the United Arab Emirates (UAE) and other countries listened to explanations by LIG Nex1 officials, showing significant interest.