Hyundai Wia exports $100 million worth of naval gun parts to the US... first in Korea

Delivery of Up to 106 Types of Naval Gun Components Over 10 Years Starting from 2022

The 5-inch naval gun (KMK45) of Hyundai Wia (Photo by Hyundai Wia)

[Asia Economy Reporter Kim Ji-hee] Hyundai Wia will export naval gun components to the United States for the first time in Korea. This order was secured through the Defense Acquisition Program Administration's (DAPA) offset trade system, marking the first time Hyundai Wia has achieved an actual export contract through this system.

On the 26th, Hyundai Wia announced that it signed a naval gun component export contract worth up to $100 million over 10 years with global defense company BAE Systems. Starting in 2022, Hyundai Wia will supply up to 106 types of naval gun components, including trunnion supports and levers for 5-inch naval guns, to BAE in the U.S. BAE is the world's third-largest global defense company, developing combat armored vehicles and naval guns.

This order was made possible through the value accumulation system introduced in 2018 as part of DAPA's 'Offset Trade Innovation Plan.' The value accumulation system collects performance records of cooperation between overseas and domestic companies and utilizes them in offset trade by providing certain counter-benefits when purchasing weapons from foreign companies in the future. Last year, DAPA signed an agreement with BAE to proceed with offset trade.

A Hyundai Wia official explained, "In addition to offset trade, this is the result of recognition of the technological capabilities accumulated over a long period of directly manufacturing naval guns," adding, "Based on experience manufacturing the Republic of Korea Navy's main naval guns, such as 5-inch and 76mm guns, we secured technology for handling special materials and high quality, which enabled us to succeed in the order."

Hyundai Wia plans to further strengthen cooperation with about 10 domestic small and medium-sized enterprises (SMEs) that supply core components of naval gun modules, in accordance with the offset trade win-win cooperation mandatory system introduced last year. Since a significant portion of naval gun modules is made from SME components, this is expected to contribute to the growth of SMEs as well.

Based on this order, Hyundai Wia plans to continue discussions with BAE on supplying various defense industry components, including naval guns.

This content was produced with the assistance of AI translation services.