[Image source=Yonhap News]

[Image source=Yonhap News]

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[Asia Economy Reporter Yang Nak-gyu, Military Specialist] In the late 1960s, U.S. President Richard Nixon revised his strategy toward the Korean Peninsula and threatened to withdraw U.S. troops stationed in South Korea. Faced with this crisis, President Park Chung-hee proposed, "Let's produce weapons ourselves and achieve self-reliant national defense." This marked the opening of the domestic defense industry. As a result, the Agency for Defense Development (ADD) was established, and the Emergency Weapon Development Project (Lightning Project) was launched. Sixty years later, South Korea has made remarkable progress, capable of designing and manufacturing tanks, submarines, precision-guided weapons, and fighter jets. This is the renaissance of K-defense industry.


In January this year, LIG Nex1 signed a contract worth 4 trillion won to export the ‘Cheongung-II’ surface-to-air missile system to the United Arab Emirates (UAE). This was the largest single weapon export deal in history. In February, Egypt confirmed the acquisition of over 200 K-9 self-propelled howitzers (worth about 2 trillion won), and in March, Saudi Arabia signed a weapons procurement contract worth 980 billion won with Hanwha Corporation.


The government and military authorities expect the scale of domestic weapon exports this year to exceed 15 billion dollars. If the premium weapons, known as ‘export stars,’ are exported as planned, South Korea will enter the world’s top five defense exporters. Major projects include Norway’s next-generation tank project, Australia’s next-generation armored vehicle (Redback, 5 to 7.5 billion dollars), Poland’s FA-50 light attack aircraft (3 billion dollars) and K-2 tank (at least 300 million dollars), Saudi Arabia’s Cheongung-II interceptor missile, next-generation frigate, Biho combined air defense system (totaling over 6 billion dollars), and exports of FA-50 light attack aircraft to Malaysia and Colombia (totaling over 1.7 billion dollars).


Recently, Norway indicated it would decide within the year whether to adopt Hyundai Rotem’s K2 tank. In February, Norway conducted field tests and evaluations of the K2 tank locally. In the second half of this year, technical and price negotiations will be held to select the preferred bidder for the tank project, with a contract expected by the end of the year.


The K2 tank, regarded as the world’s most powerful tank, is equipped with a 120mm 55-caliber smoothbore gun as its main armament. Its mobility is powered by a 1,500-horsepower engine, enabling a maximum speed of 70 km/h. It applies an active protection system that disrupts guided missiles, detecting anti-tank guided missiles approaching the tank and responding by firing smoke grenades or performing evasive maneuvers. Even if hit, it enhances survivability with explosive reactive armor.


The K9 self-propelled howitzer, developed over 10 years by Hanwha Defense, has been exported widely as a premium weapon. Completed in 1998, the K9 has a maximum range of 40 km, a firing rate of 6 to 8 rounds per minute, and an ammunition capacity of 48 rounds. In 2001, Hanwha Defense signed its first local production and supply contract with Turkey through technology transfer. Since then, K9s have been exported to Poland, Finland, India, and Norway. Norway acquired 24 K9s and 6 K10 ammunition resupply armored vehicles. According to the Stockholm International Peace Research Institute (SIPRI), from 2000 to 2017, the K9 accounted for 48% of the global self-propelled howitzer export market, demonstrating its recognized performance.


The Australian market has also been challenged. The next-generation infantry fighting vehicle ‘Redback’ is a 5th-generation infantry fighting vehicle. In September 2019, it was selected as one of the final two candidates for Australia’s tracked armored vehicle procurement project (LAND 400 Phase 3). The preferred bidder selection is expected this year.


Weapon systems that dominate the seas are also considered export successes. The submarine, called the ‘Assassin of the Sea,’ has achieved export success following domestic development. Since 2011, Daewoo Shipbuilding & Marine Engineering has exported six 1,400-ton submarines (to Indonesia and others) and six naval vessels including auxiliary ships (to the UK and Norway), with cumulative exports reaching 3.6 billion dollars (about 4.62 trillion won). Daewoo Shipbuilding & Marine Engineering signed contracts with Indonesia in 2011 and 2019 to export six 1,400-ton submarines. The exported submarines are upgraded versions of the Navy’s 209-class Jangbogo-class submarines (1,200 tons). Through these exports, South Korea has been recognized overseas for its submarine construction capabilities, one of the most challenging shipbuilding technologies, becoming the world’s fifth-largest submarine exporter after the UK, France, Russia, and Germany.


The KT-1 basic trainer, developed purely with domestic technology by Korea Aerospace Industries (KAI), was exported to Indonesia in 2001, Turkey in 2007, and Peru in 2012. In 2014, 12 units of the domestically produced FA-50 light attack aircraft were exported to the Philippines. The FA-50 had previously been exported to Indonesia with 16 units in 2011. KAI has achieved cumulative sales of 3.9 trillion won through exports of the T-50 series. The economic effect of exporting one T-50 aircraft is said to be equivalent to exporting 1,000 mid-sized cars.



South Korea is also targeting the U.S. market. The plan is to jointly target the global training and light attack aircraft market, estimated at over 500 units, including the U.S. The U.S. plans to procure about 200 Air Force tactical trainers and 220 Navy advanced trainers (160 units) and tactical trainers (65 units) around 2024-2025. KAI’s strategy is to capture 37% of the light fighter market (about 2,800 units) starting with the U.S.


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

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