hankyoreh

South Korea’s FA-50 fighter jet. (Korea Aerospace Industries)

South Korea’s defense export orders, which previously stood at US$2–3 billion per year, reached a record US$7.25 billion last year. The jump in sales is seen as resulting from a resumption of major export business activities that had been delayed due to the global pandemic and changes in the international security environment.

The surge in arms exports is continuing this year. The Korea Institute for Industrial Economics and Trade (KIET) is even predicting that defense exports could surpass the US$20 billion mark, which would mean a more than twofold increase compared with last year.

According to a KIET report on South Korea’s defense export support system published on Monday, it is highly likely that South Korea will achieve its goal — set at the beginning of this year — of US$15 billion in defense exports.

The positive outlook is based on export contracts signed with Egypt in February (for K-9 self-propelled guns worth US$1.4 billion) and Poland (K-2 tanks, armored vehicles, and FA-50 light combat aircraft worth over US$7 billion won) in July. If these contracts go through, the institute predicted that defense exports would exceed US$20 billion.

After passing the US$1 billion mark in 2008, domestic defense export orders remained at US$2–3 billion annually between 2011 and 2020. Last year, those figures more than doubled.

Geographically, South Korean defense exports have expanded beyond Asia and North America to include the Middle East, Europe, Central and South America, Oceania, and Africa.

According to the KIET, the kinds of defense products being exported are also expanding beyond ammunition and naval vessels into more diverse and advanced areas including maneuvering, firepower, aviation, warships, and guided weapons.

In the last five years (2017–2021), South Korea's defense exports increased by 177% compared with the preceding five years (2012–2016), recording the world's highest growth rate in the defense export market. Due to this major surge in exports, South Korea has been named the world's eighth-largest exporter of defense products.

If this trend continues, KIET predicts that South Korea will be able to surpass China, Germany, Italy, and the UK and reach the number four rank among global defense exporters.

The foundation for South Korea's strength in arms exports is the growth of the global defense industry in response to changes in the international security environment.

Based on data acquired from the Stockholm International Peace Research Institute (SIPRI), the KIET’s research showed that since 2015, the global defense budget has continued to increase every year, exceeding the US$2 trillion mark at US$2.7 trillion in 2021.

By Kim Young-bae, senior staff writer

Please direct questions or comments to [english@hani.co.kr]