{"id":2200455,"date":"2023-03-21T20:52:50","date_gmt":"2023-03-21T11:52:50","guid":{"rendered":"https:\/\/koreapro.org\/?p=2200455"},"modified":"2023-04-05T16:07:53","modified_gmt":"2023-04-05T07:07:53","slug":"why-aukus-could-have-knock-on-effects-on-south-korea-australia-defense-ties","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2023\/03\/why-aukus-could-have-knock-on-effects-on-south-korea-australia-defense-ties\/","title":{"rendered":"Why AUKUS could have knock-on effects on South Korea-Australia defense ties"},"content":{"rendered":"
When Seoul and Canberra <\/span>concluded<\/span><\/a> a $1 billion contract with defense giant Hanwha a little over a year ago, it marked a historical point in Australia\u2019s defense strategy as the first major deal with an Asian country.\u00a0<\/span><\/p>\n In a following contract, the South Korean firm far exceeded that deal by reportedly winning the bid to supply the Australian Defense Force with 450 <\/span>Infantry Fighting Vehicles<\/span><\/a> (IFV), which are worth about $27 billion.<\/span><\/p>\n It is the Australian army\u2019s <\/span>largest acquisition program<\/span><\/a>. If successfully concluded, the deal would supersede the previous Hanwha contract to mark the most significant development in South Korea-Australia defense ties.\u00a0<\/span><\/p>\n But the outcome of the agreement is far from certain because of Australia\u2019s other growing defense commitments. If the two countries are not careful, diplomatic relations will suffer.\u00a0<\/span><\/p>\n CHANGING COMMITMENTS<\/b><\/p>\n The Australian government decided late last year to <\/span>delay<\/span><\/a> the official announcement of the bid\u2019s winner until its Defense Strategic Review (DSR), an independently led examination of Australia’s defense force posture, released its findings. The DSR will inform Canberra\u2019s defense allocation in the federal budget in May.\u00a0<\/span><\/p>\n Due to China\u2019s growing naval capabilities, the DSR will likely shift priorities to long-range missile systems and capabilities. On the other hand, as some analysts <\/span>call into question<\/span><\/a> the relevance of IFVs in the Indo-Pacific security environment, there are <\/span>growing concerns<\/span><\/a> that the Hanwha contract could be significantly shrunk or outright canceled.<\/span><\/p>\n Critically, Australian defense minister Richard Marles has <\/span>hinted<\/span><\/a> that his government is prepared to scale back some defense projects as priorities shift.\u00a0<\/span><\/p>\n While the release of the DSR is anticipated in April, the AUKUS announcement just earlier this month is likely a harbinger of the fate of the IFV project. U.S. President Joe Biden, British Prime Minister Rishi Sunak and Australian Prime Minister Anthony Albanese met on <\/span>March 13<\/span><\/a> for the announcement of the optimal pathway for Australia to acquire a fleet of nuclear-powered submarines through AUKUS.<\/span><\/p>\n The outcomes of this announcement <\/span>estimate a total project cost of up to $368 billion <\/span><\/a>through the 2050s, all but confirming that AUKUS-related expenditures will make up the lion\u2019s share of the Australian defense budget for decades to come.<\/span><\/p>\n