{"id":2199580,"date":"2022-11-28T10:00:39","date_gmt":"2022-11-28T10:00:39","guid":{"rendered":"https:\/\/www.nknews.org\/koreapro\/?p=2199580"},"modified":"2023-04-05T16:10:55","modified_gmt":"2023-04-05T07:10:55","slug":"the-three-big-drivers-of-the-south-korean-defense-industry","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2022\/11\/the-three-big-drivers-of-the-south-korean-defense-industry\/","title":{"rendered":"The three big drivers of the South Korean defense industry"},"content":{"rendered":"

Last week, President Yoon Suk-yeol <\/span>pledged<\/span><\/a> to build South Korea\u2019s weapons industry into the world\u2019s fourth-largest arms exporter, calling defense a \u201cnew future growth engine\u201d for the national economy and the pivot point for the high-tech industry.\u00a0<\/span><\/p>\n

\u201cWith the intensifying competition for technological supremacy, we need to secure technological competitiveness to develop game-changing weapon systems for future wars,\u201d he said during a meeting at the Korea Aerospace Industries.<\/span><\/p>\n

South Korea\u2019s arms exports have <\/span>risen dramatically<\/span><\/a> in a few short years, driven by an uncertain international security environment. South Korea successfully negotiated its <\/span>largest arms deal with Poland<\/span><\/a> earlier this year, estimated to be 20 trillion won ($15 billion), partially to restore Poland\u2019s reserves depleted since the start of Russia\u2019s invasion of Ukraine. The deal included exports of South Korean tanks, howitzers, and fighter jets.<\/span><\/p>\n

That deal alone <\/span>doubled<\/span><\/a> South Korea\u2019s arms exports from the previous year. However, the list of potential clients seeking to purchase South Korean weapons, such as <\/span>Norway<\/span><\/a>, <\/span>Saudi Arabia<\/span><\/a>, and <\/span>Australia<\/span><\/a>, could help boost South Korea\u2019s export-driven economy and propel its defense industry even further.<\/span><\/p>\n

\"\"

South Korean President Yoon Suk-yeol visits a South Korean defense company on Nov. 24, 2022 | Image: The Presidential Office<\/a><\/p><\/div>\n

AMERICAN INTEROPERABILITY<\/b><\/p>\n

Driven by North Korean threats since the 1950s, South Korea is one of the few developed nations that has maintained a robust, growing defense industry. In 2020, South Korea portioned <\/span>2.8% of its GDP<\/span><\/a> for its defense budget \u2014 larger than most other U.S. allies.<\/span><\/p>\n

The close relationship with the U.S. has required both countries\u2019 weapons to be interoperable. Any U.S.-friendly country that wishes to purchase relatively inexpensive weapons compatible with American weapons systems can easily find them in South Korea.<\/span><\/p>\n

Many Western nations \u2013 primarily the U.S. and Poland \u2013 have aided Ukraine\u2019s defense by supplying Kyiv with their weapons since the war began nine months ago. As a result, the war has hemorrhaged weapons on munitions on <\/span>both<\/span><\/a> sides<\/span><\/a> of the war.\u00a0<\/span><\/p>\n

The arms deal with Poland was a direct consequence of the war in Ukraine. The Polish defense ministry said after the large Seoul-Warsaw arms deal was signed that <\/span>only South Korean manufacturers<\/span><\/a> could deliver weapons of the quality that Poland required at such short notice and with such a broad collaboration with its own defense industry.<\/span><\/p>\n

Earlier this year, Poland initially sought to purchase <\/span>500 HIMARS<\/span><\/a> from the U.S., but then signed a contract with South Korea\u2019s Hanwha Defense for <\/span>288 Chunmoo multiple rocket launchers<\/span><\/a> in October. The Polish defense minister <\/span>explained<\/span><\/a> that the U.S. could not deliver the 500 HIMARS in a \u201csatisfactory timeframe\u201d due to \u201climited industrial capabilities\u201d and so Warsaw turned to Seoul.\u00a0<\/span><\/p>\n

As South Korea has consistently amassed a sizeable weapons stockpile, the U.S. has also requested to <\/span>purchase<\/span><\/a> 100,000 artillery rounds from South Korea with the intention of shipping those rounds to Ukrainian forces. Although Seoul <\/span>denies<\/span><\/a> that Kyiv will be the final recipient of those rounds and that it understands that the U.S. would be the end user, the timing of the arms deal suggests, at the very least, several possible applications for those rounds.<\/span><\/p>\n

Another development that has helped to boost South Korea\u2019s arms exports is <\/span>straining ties<\/span><\/a> between the U.S. and Saudi Arabia after the assassination of permanent U.S. resident <\/span>Jamal Khashoggi<\/span><\/a>, Saudi Arabia\u2019s ongoing <\/span>war in Yemen<\/span><\/a> and ongoing <\/span>disputes over oil production<\/span><\/a>.<\/span><\/p>\n

The rift has led to <\/span>uncertainties<\/span><\/a> in traditionally large U.S. weapons sales to Saudi Arabia. Coupled with economic sanctions imposed on Russia for its invasion of Ukraine, the Saudis turned to South Korea for its defense needs.<\/span><\/p>\n

Meanwhile in East Asia, tensions appear poised to worsen in the South China Sea in the coming years, making Southeast Asia an important market for future South Korean weapons.<\/span><\/p>\n

 <\/p>\n

 <\/p>\n

\"\"

South Korean President Yoon Suk-yeol being briefed on homegrown tankers during his tour of a ROK defense firm, Nov. 24, 2022 | Image: The Presidential Office<\/a><\/p><\/div>\n

ROCKY ROAD?<\/b><\/p>\n

But it\u2019s unclear whether South Korea\u2019s defense industry can keep up with increasing international demand without cannibalizing its own military\u2019s needs. For example, South Korea has <\/span>already delivered<\/span><\/a> the first batch of its K2 tanks to Poland just three months after finalizing the arms deal. That could have only been possible if Seoul had shipped tanks to Poland initially intended for its military.<\/span><\/p>\n

Further, considering the growing nuclear and missile threats that Seoul faces from Pyongyang, prioritizing international orders over its military modernization is not a sustainable long-term solution.<\/span><\/p>\n

Aside from utilizing it as a new future growth engine, the logic behind Seoul\u2019s drive to increase weapons exports is to improve the defense industry\u2019s profit margins to reinvest in more hi-tech weapons. Ideally, that would allow South Korea to reach President Yoon Suk-yeol\u2019s goal of South Korea becoming the world\u2019s fourth-biggest arms exporter while also modernizing the armed forces.\u00a0<\/span><\/p>\n

But one of the problems that South Korea faces is that it suffers from <\/span>frequent labor strikes targeting key industries<\/span><\/a>. A much more serious concern is its <\/span>dependence on China<\/span><\/a> for critical resources means South Korean manufacturers are especially <\/span>vulnerable to external shocks<\/span><\/a>. Although the South Korean government and business community have been reaching out to <\/span>international<\/span><\/a> partners<\/span><\/a> to remedy the situation, it is difficult to overstate China\u2019s leverage over the ROK economy.<\/span><\/p>\n

South Korea also faces significant defense industry competition. Although it has successfully cornered <\/span>half<\/span><\/a> of the world\u2019s self-propelled howitzer market, its naval ships face <\/span>stiff<\/span><\/a> international<\/span><\/a> competition and <\/span>crippling technical woes<\/span><\/a>.<\/span><\/p>\n

In the meantime, the Yoon administration\u2019s ambition to become a significant global arms supplier enjoys bipartisan support. So, the defense industry will continue to receive the government\u2019s full support for the foreseeable future and remain robust.\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":"

Last week, President Yoon Suk-yeol pledged to build South Korea\u2019s weapons industry into the world\u2019s fourth-largest arms exporter, calling defense a \u201cnew future growth engine\u201d for the national economy and the pivot point for the high-tech industry.\u00a0 \u201cWith the intensifying competition for technological supremacy, we need to secure technological competitiveness to develop game-changing weapon systems […]<\/p>\n","protected":false},"author":10207,"featured_media":2199584,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[24,26,27],"class_list":["post-2199580","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-business-economy","tag-defense-security","tag-domestic-politics"],"yoast_head":"\nThe three big drivers of the South Korean defense 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\/11\/the-three-big-drivers-of-the-south-korean-defense-industry\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The three big drivers of the South Korean defense industry - 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