Among the World's Top 100 Defense Companies, 3 Are Domestic Firms

Modern warfare determines the outcome of war in a short period, but domestic defense companies do not stockpile raw materials and parts to reduce costs, making it practically difficult to produce new weapons within one year.

[Asia Economy Yang Nak-gyu, Military Specialist Reporter] Although three domestic companies were included among the world's top 100 weapons manufacturers, their arms sales amounted to only half of Japan's, it was revealed.

According to the '2020 World Defense Market Yearbook' published on the 14th by the Defense Technology Quality Institute, South Korea had three companies ranked within the top 100 worldwide: Hanwha Aerospace (46th), Korea Aerospace Industries (60th), and LIG Nex1 (67th).

The total arms sales of these companies in 2018 were $5.2 billion, accounting for 1.2% of global arms sales. Although this figure increased by 9.9% compared to 2017, it was only about half of Japan's sales. Hanwha Aerospace recorded the highest arms sales in South Korea in 2018 with $2.3 billion.

Japan had six defense companies ranked within the top 100. These companies sold weapons worth $9.9 billion in 2018, representing 2.4% of global arms sales. Japan's defense industry sales were mainly analyzed to be driven by domestic demand. Notably, Fujitsu, ranked 72nd among the top 100, saw a 10% increase in sales in 2018.

Additionally, South Korea and Japan remain the largest customers importing American-made weapons. South Korea ranked 7th (3.4%) among the world's top 40 arms importers, purchasing weapons from the United States (55%), Germany, Spain, and others. Japan did not rank within the top 25 arms exporters but was 16th (1.8%) among arms importers, buying weapons from the United States (96%), the United Kingdom, and Sweden. The scale of arms imports from 2010 to 2019 was around $4 billion, with aircraft (69.2%), engines (10.4%), naval weapons (7.3%), and missiles (6.3%) in that order.

Japan plans to purchase an additional 105 F-35 stealth fighters and, in cooperation with the United States, develop an electronic warfare aircraft by modifying either the C-2 transport aircraft or the P-1 patrol aircraft to disrupt enemy radar and communication networks from long distances, with deployment expected from 2027. Japan will procure 150 next-generation multipurpose UH-X helicopters in cooperation with Bell, with operational deployment starting in 2022. It will also purchase 17 V-22B (Block C) Osprey aircraft from the United States to be deployed with the Ground Self-Defense Force's amphibious units organized into two expeditionary divisions and two regiments. Furthermore, Japan plans to build a new class of submarines to replace the Oyashio-class diesel submarines (with a submerged displacement of about 3,000 tons).

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