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[Jakarta (Indonesia) = Joint coverage by the Ministry of National Defense and Asia Economy reporter Jang Hee-jun] Major defense industry companies in the Republic of Korea participated in Southeast Asia's largest defense industry exhibition from the 2nd to the 5th (local time), strengthening their export bases. In particular, they began sowing seeds for future exports in fields such as small and medium-sized submarines and guided weapons.

On the 5th, 19 domestic defense companies showcased new technologies in the army, navy, and air force sectors at the JI Expo exhibition hall in Jakarta, Indonesia, where the event concluded. The reason why major defense companies, including those from Korea, are focusing on the Indonesian market is that this market serves as a gateway to Southeast Asia. Korea's market share in Indonesia's defense import market is 16.1% (based on cumulative data from 2011 to 2020), ranking second. It forms a duopoly with the United States, which holds the first place at 17.0%, with only a paper-thin difference.

Major Corporations Make Bold Moves; The Key is Securing Price Competitiveness

Kang Gu-young, President of KAI, attended 'Indo Defense 2022' held on the 2nd at the JIExpo Exhibition Hall in Jakarta, Indonesia, and introduced a scaled model of the light attack aircraft FA-50.
[Photo by Ministry of National Defense Joint Press Corps]

This year, five major Korean companies participated in the event: Korea Aerospace Industries (KAI), Daewoo Shipbuilding & Marine Engineering (DSME), LIG Nex1, Kia, and Poongsan.

KAI showcased five types of scaled-down aircraft models at the exhibition, including the light attack aircraft 'FA-50', the supersonic fighter 'KF-21', and the small armed helicopter (LAH) Surion (KUH-1). KAI actively promoted the export of not only the FA-50 but also helicopters to the Indonesian market during the event.

Kang Gu-young, President of KAI, told Korean reporters on-site, "When you look at our helicopters, their performance is outstanding in terms of operations, stability, and maneuverability," adding, "The issue is securing price competitiveness, and to that end, we are implementing a strong cost reduction policy."

Daewoo Shipbuilding & Marine Engineering also set up a large exhibition booth of 119㎡ and expanded efforts to pioneer the submarine market. They displayed the 1,200-ton class submarine DSME1200, the 1,400-ton class DSME1400, and the 3,000-ton class DSME3000 submarines. Scaled models of the frigate DW3000F, military support ship MRSS, and submarine rescue ship ASR were also presented.

Jung Woo-sung, Executive Director of DSME's Special Ship Division, said, "In Southeast Asia, due to natural disasters such as earthquakes, tsunamis, and typhoons, there is a strong demand for multipurpose vessels that can be used not only for military operations but also for disaster response, especially submarines around the 2,000-ton level," indicating that the marketing focus is on small and medium-sized submarines.

LIG Nex1 exhibited advanced guided weapons at an independent booth, including the medium-range surface-to-air guided weapon 'Cheongung-II', the anti-tank guided weapon 'Hyeongung', and the portable surface-to-air guided weapon 'Shingung', pioneering the advanced guided weapons market.

Hong Jun-ki, Head of LIG's Asia Business Team, analyzed, "Recently, there has been a trend of demand for medium-range air defense guided weapons in addition to short-range ones locally," adding, "In Southeast Asia, including Indonesia, Malaysia, and Thailand, alongside the traditional naval power increase, there is growing demand for expanding air defense networks." He further explained, "In response to these demands, various strategies are being devised by country, especially to meet needs for technology transfer and local production."

Poongsan took a bold approach with a variety of premium ammunition. At this year's exhibition, they targeted the market for 105mm shells used by the Indonesian Army's main battle tank 'Harimau'. The 105mm shells are produced only in Korea and Europe. Kim Si-wook, Head of Export Team 3 at Poongsan's Defense Sales Division, emphasized, "All rifle, tank, and self-propelled artillery shells meet not only U.S. but also NATO standards," highlighting, "We are actively emphasizing weapon system compatibility to target the Southeast Asian market, including Indonesia."

Defense Industry Association Provides 'Supporting Fire'... Small and Medium Enterprises Perform Well

On the 2nd (local time), representatives of small and medium-sized enterprises were preparing for the exhibition at the shared booth "Korea Pavilion" set up by the Korea Defense Industry Promotion Association at the JIExpo Exhibition Hall in Jakarta, Indonesia.
[Photo by Ministry of National Defense Joint Press Corps]

The Korea Defense Industry Association has taken a more aggressive approach to support Korean companies' overseas expansion. At this year's Indo Defense event, the exhibition area for the 'Korea Pavilion', a joint exhibition space for small and medium enterprises, was expanded by about 10% to 798㎡ compared to 725.5㎡ in 2018, showing full support.

Na Sang-woong, Executive Vice Chairman of the Defense Industry Association, flew to Jakarta immediately after attending the Jordan Defense Industry Exhibition held from the 1st to the 3rd. He also met with Korean businesspeople on-site until the closing of the Indo Defense event. Na told Korean reporters, "Korean defense exports have now reached a certain trajectory and will not decline for the time being," suggesting, "There needs to be a (government-wide) control tower that can firmly anchor the center of Korean defense exports."

Among small and medium enterprises, Kobico, a specialized vehicle company, set up an independent exhibition booth to target the local market. Since 2009, Kobico has exported a total of over 160 'Black Shark' armored transport vehicles to the Indonesian National Police. A company official explained, "This month, we exported three Bomb Squad Tactical Vehicles (BSTV) to the Indonesian National Police and plan to export 17 multipurpose operational vehicles (RMM) in the first half of next year."

Twelve small and medium enterprises that secured exhibition space in the 'Korea Pavilion' actively pursued market development. Among them, Yeonhap Precision showcased 'connectors' for communication between weapon system equipment and 'slip rings' that enhance the completeness of strike systems such as naval guns. Suseong Precision Machinery exhibited a muzzle automatic cleaner that automatically cleans the barrels of weapons like the K-9 self-propelled howitzer.

Taekyung Electronics challenged the market with a searchlight drone. This drone can illuminate an area of about 1,000㎡ (300 pyeong) from an altitude of 150 meters. According to officials, even if it does not immediately lead to contracts, the promotional effect at foreign defense exhibitions is significant. Jiwoo Information Technology brought a virtual shooting training system already applied at domestic reserve forces training grounds. A company official introduced, "The Indonesian police and military special forces have shown great interest."

Optical equipment specialist EOSYSTEM showcased night vision devices and thermal imaging equipment through a joint exhibition with Indonesia's state-owned defense company 'PT. PINDNAD'. The two parties also achieved results by agreeing to sign a comprehensive industrial cooperation agreement related to the supply of EOSYSTEM's high-quality electro-optical equipment during this exhibition.

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