South Korea is poised to experience a significant surge in defense exports over the next four years, solidifying its position as a major arms producer, according to a report by the Korea Institute for Industrial Economics and Trade.
With a rapidly expanding defense industry, South Korea is projected to reach defense exports of around $23.4 billion by 2027, an increase of 87% from 2021.
This growth will contribute to the creation of approximately 69,000 jobs, positioning South Korea as a strategic industrialization and defense powerhouse.
South Korea has witnessed a substantial rise in arms sales, driven by increased demand for military equipment and weapons due to conflicts such as the war in Ukraine.
Although South Korea has refrained from directly supplying lethal weapons to Ukraine, it has provided humanitarian assistance and other military supplies to support Kyiv’s war efforts.
This cautious approach aims to avoid antagonizing Moscow, as North Korea has allegedly covertly supplied artillery to Russia for use against Ukraine.
Ambitious Goals: President Yoon Suk Yeol has committed to elevating South Korea among the world’s top arms exporters, competing with global leaders like the United States, Russia, France, the United Kingdom, China, and Germany.
By achieving a position within the top four defense exporters, South Korea’s defense industry will not only strengthen its strategic importance but also bolster its industrial capabilities.
South Korea has established significant partnerships, particularly with Poland, to expand its presence in the arms market.
Last year, the two countries sealed their largest-ever arms deal worth $13.7 billion, with Poland purchasing 48 FA-50 light attack aircraft to augment its air force.
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South Korea Emerges as a Key Player in European Defense Market
Additionally, Poland has agreed to procure South Korean K2 main battle tanks and K9 self-propelled howitzers through a multi-billion-dollar deal.
These collaborations provide South Korea with an ideal gateway to penetrate European defense markets.
South Korea’s growing reputation for delivering high-quality defense products at competitive prices positions it favorably to meet the defense needs of various European countries.
Previously, European nations primarily considered purchasing defense products within the continent, but South Korean companies now offer an appealing alternative, offering cost-effective solutions with rapid delivery.
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Source: Newsweek