China Pumps 'K-Bangsang'... No Sustainability in Exports

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Yoon Seok-yeol President Seems Upset Over Pride in World 4th Largest Defense Exporter Blueprint

[Asia Economy Senior Reporter Cho Young-shin] China’s Defense Daily belittled South Korea’s defense industry, stating that although South Korea’s arms export value may exceed $20 billion (28.8 trillion KRW) this year, the industry is not sustainable. The Defense Daily is the official publication of the People’s Liberation Army.

China’s People’s Daily Online, citing the Defense Daily, reported on the 25th that South Korea’s arms export value has surpassed $10 billion, marking an all-time high in annual arms exports. It added that if arms sales contracts with Australia, Malaysia, and Norway are finalized, South Korea’s arms export value could exceed $20 billion this year.

The Defense Daily analyzed that the rapid increase in South Korea’s arms exports is due to changes in the international environment and the South Korean government’s proactive arms export policy. It first noted that the main importers of South Korean weapons are Eastern European, Southeast Asian, and Middle Eastern countries.

The Defense Daily reported that in January, South Korea began exporting $3.5 billion worth of Cheongung II interceptor missiles to the United Arab Emirates, and also exported K-9 self-propelled howitzers to Egypt and Saudi Arabia, as well as K-2 Black Panther tanks, K-9 self-propelled howitzers, and FA-50 light attack aircraft to Poland. It introduced that several countries including Turkey, Finland, India, Australia, Estonia, and Norway have placed orders for South Korean K-9 self-propelled howitzers.

The Defense Daily explained that the rapidly changing international situation, such as neighboring countries importing South Korean weapons due to the Russia-Ukraine war, is driving South Korean arms exports.

It also analyzed that various support measures such as local joint production and financial assistance are helping South Korean arms exports.

Additionally, it elaborated that South Korea’s defense industry’s ability to establish a mass production system for conventional weapons and to deliver orders promptly is another factor increasing orders for South Korean weapons.

However, the Defense Daily forecasted that although South Korea’s arms exports are setting new records, they will not be sustainable. It stated that except for the United Arab Emirates and Saudi Arabia, the adoption of South Korean weapons by other countries is largely temporary.

It cited the FA-50 light attack aircraft as a representative weapon. It analyzed that the South Korean FA-50 is only a temporary substitute fighter, and that U.S. allies will adopt U.S.-made F-35 stealth fighters and European Union (EU) jointly developed fighters in the future. This implies that South Korean fighters are less competitive compared to U.S. and European fighters.

It also expressed skepticism regarding profitability. Although countries like Poland have placed large orders for South Korean weapons, payments are made in installments. Among the countries that have placed large orders for South Korean weapons, there are almost no economically advanced countries, and most are experiencing domestic controversy over the costs associated with large-scale orders of South Korean weapons. Chinese media pointed out that depending on economic conditions, South Korea may not receive payment for weapon deliveries on time.

South Korea’s defense exports (based on the Stockholm International Peace Research Institute data for the past five years) ranked 8th in the world as of the end of last year. The rankings are: 1st United States (39%), Russia (19%), France (11%), China (4.6%), Germany (4.5%), Italy (3.1%), United Kingdom (2.9%), South Korea (2.8%), Spain (2.5%), and Israel (2.4%).

President Yoon Suk-yeol recently declared his intention to make South Korea one of the world’s top four defense powers. As of the end of last year, the world’s 4th largest arms exporter was China. From China’s perspective, this is a blueprint that could hurt its pride, which appears to be why the Defense Daily disparaged South Korea’s arms export industry.

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