{"id":2199136,"date":"2022-10-11T08:08:29","date_gmt":"2022-10-11T08:08:29","guid":{"rendered":"https:\/\/www.nknews.org\/koreapro\/?p=2199136"},"modified":"2023-04-05T16:11:11","modified_gmt":"2023-04-05T07:11:11","slug":"ukraine-war-and-north-korean-threats-push-forward-south-koreas-arms-industry","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2022\/10\/ukraine-war-and-north-korean-threats-push-forward-south-koreas-arms-industry\/","title":{"rendered":"Ukraine war and North Korean threats push forward South Korea\u2019s arms industry"},"content":{"rendered":"

South Korea is one of the fastest-growing arms exporters in the world, with its military sales <\/span>soaring<\/span><\/a> by 177% during the past five years. Boasting the highest increase in the volume of exports of major arms among the top 20 suppliers, South Korea became the eighth largest arms exporter in 2017-2021, far outpacing the growth of France, Italy and Australia.<\/span><\/p>\n

ROK defense companies sell a broad range of homegrown products, including tanks and artillery, mid-range surface-to-air missiles and self-propelled howitzers. Moving forward, the country’s defense technology is expected to develop further; after completing successful flight tests of its <\/span>homegrown KF-21 fighter jet<\/span><\/a>, South Korea joined an <\/span>elite club<\/span><\/a> of just seven countries that have locally developed supersonic fighter jets.\u00a0<\/span><\/p>\n

Amid <\/span>evolving threats<\/span><\/a> from North Korea, President Yoon Suk-yeol appears set to support not only South Korea\u2019s own defense system over the next five years but also strategic partnerships with other countries. His <\/span>inauguration speech<\/span><\/a> in May was largely a defense of U.S.-led internationalism, and while he may have avoided direct mention of nations other than North and South Korea, Yoon also made it clear that <\/span>strengthening military alliances<\/span><\/a> with other democracies ought to be a primary objective of his administration.\u00a0<\/span><\/p>\n

A list of policy tasks the Yoon administration <\/span>unveiled in May<\/span><\/a> also calls for South Korea to become \u201ca global leading nation that contributes to freedom, peace and prosperity\u201d on the Korean Peninsula and beyond. This includes strengthening cooperation with the U.S., Japan and European nations, as well as prioritizing diplomacy that focuses on economic security and foreign affairs.\u00a0\u00a0<\/span><\/p>\n

In line with Yoon\u2019s pledges, the South Korean defense ministry <\/span>vowed<\/span><\/a> to develop \u201ccutting-edge technology\u201d that implements Fourth Industrial Revolution concepts such as artificial intelligence and big data into defense technologies. The defense ministry has also focused its budgeting to secure core military forces of the country and respond to North Korea\u2019s nuclear and missile threats, such as bolstering the so-called <\/span>Three Axis System<\/span><\/a> for the country\u2019s defense.\u00a0<\/span><\/p>\n

As such, while <\/span>decreasing<\/span><\/a> the overall rate of government budget expansion from 8.9% to 5.2%, the Yoon administration will request a 4.6% <\/span>increase<\/span><\/a> to national defense spending for 2023, raising Seoul\u2019s defense budget to a record-high $42.4 billion (57.1 trillion won). While cutting spending for warplanes and a <\/span>light aircraft carrier<\/span><\/a>, the proposed defense budget earmarks millions to develop hypersonic glide vehicles and propellent technology systems in 2023.<\/span><\/p>\n

\"\"

South Korean ground weapons demonstration at DX Korea, Dec. 30, 2020. | Image: Defense Expo Korea<\/a><\/p><\/div>\n

BUILT-IN ADVANTAGES<\/b><\/p>\n

When seeking to explain South Korea\u2019s rapid weapons export growth, experts posit that the biggest appeals of \u201cK-arms\u201d may be simple economics and geopolitics.<\/span><\/p>\n

\u201cIt is easier for South Korean weapons manufacturers to source high quality yet low price goods, at prices cheaper than weapons manufactured by countries like Australia,\u201d said Peter Ward, an economist and <\/span>NK Pro<\/span><\/i> contributor.<\/span><\/p>\n

\u201cSouth Korea was probably able to cut the price of labor costs, and they have many more civilian industries producing useful parts including screws, metal plates and specialized equipment,\u201d he said.<\/span><\/p>\n

Seokhoon Paul Choi of the Seoul-based risk consultancy Stratways Group told <\/span>Korea Pro<\/span><\/i> that, \u201cPeople understand that what we sell may not be the most sophisticated, but [South Korea] is able to offer a solid, reliable product that is at a much more affordable price point than weapon systems of countries such as the United States.\u201d<\/span><\/p>\n

A lot of the defense industry infrastructure feeding South Korean arms exports over the past several years has been around since <\/span>the 1970s<\/span><\/a>, Ward added, a legacy of the Korean War. This includes \u201cfactory lines, engineering capacity, companies and labor and technical expertise.\u201d<\/span><\/p>\n

This institutional knowledge has allowed South Korean exporters to quickly scale up and meet soaring demand for weapons following Russia\u2019s invasion of Ukraine. Even before that, Europe had <\/span>posted<\/span><\/a> the fastest increase in arms imports of all regions, acquiring 19% more major arms in 2017-2021 than the previous five-year period.<\/span><\/p>\n

Competitors in the U.K., France and elsewhere may have more established industrial arms capabilities, Ward said, but the war in Ukraine led to demand \u201cthat currently cannot be met by Western European or North American manufacturers,\u201d creating a key opportunity for South Korea.<\/span><\/p>\n

South Korea benefits from this \u201crenaissance\u201d in defense investment, Choi explained, \u201cnot only because [war-torn regions] have heightened security concerns, but also because they are supporting Ukraine with weapons and thus need [their inventories] to be restocked.\u201d\u00a0<\/span><\/p>\n

The result is a South Korean arms industry that is not only selling more weapons overall but diversifying its business partners and geographic footprint away from more established partners in Asia and Oceania, which <\/span>accounted<\/span><\/a> for 63% of South Korean arms exports in 2017-21.<\/span><\/p>\n

For example, South Korea signed its biggest arms deal in history with <\/span>Poland<\/span><\/a> in July, with Warsaw agreeing to purchase almost 1,000 tanks, 600 pieces of artillery and 48 fighter jets. At the beginning of 2022, South Korea also signed a $3.5 billion deal with the <\/span>United Arab Emirates<\/span><\/a> to export missiles, marking the nation’s largest-ever arms export deal in history.\u00a0<\/span><\/p>\n

And as defense companies in Seoul scale up homegrown arms production, the country also faces growing risks from North Korea\u2019s continued <\/span>weapons development and testing<\/span><\/a>, an important factor that helps prop up the domestic defense industry.\u00a0<\/span><\/p>\n

Thus while the growth of South Korea\u2019s defense industry may have begun <\/span>before Yoon<\/span><\/a>, the broader security environment Seoul faces and his administration\u2019s stated commitment to fostering arms exports will see the ROK defense industry continue to grow into a major player in the coming years and beyond.\u00a0<\/span><\/p>\n

Edited by Arius Derr<\/span><\/i><\/p>\n

Business & Economy<\/span><\/a>Defense & Security<\/span><\/a>Domestic Politics<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

South Korea is one of the fastest-growing arms exporters in the world, with its military sales soaring by 177% during the past five years. Boasting the highest increase in the volume of exports of major arms among the top 20 suppliers, South Korea became the eighth largest arms exporter in 2017-2021, far outpacing the growth […]<\/p>\n","protected":false},"author":10207,"featured_media":2199133,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[24,26,27],"class_list":["post-2199136","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-business-economy","tag-defense-security","tag-domestic-politics"],"yoast_head":"\nUkraine war and North Korean threats push forward South Korea\u2019s arms industry - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2022\/10\/ukraine-war-and-north-korean-threats-push-forward-south-koreas-arms-industry\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ukraine war and North Korean threats push forward South Korea\u2019s arms industry - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"South Korea is one of the fastest-growing arms exporters in the world, with its military sales soaring by 177% during the past five years. 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