"K-Defense 'Jangbogo-class Submarine·Redback' High Potential for Future Export Growth"

Hanwha's defense business is expected to have high export growth potential in the future with Redback, the country's first export strategy product, and Jangbogo-class, Korea's first 3,000-ton submarine.

Moon Geun-sik, a special professor at Hanyang University Graduate School of Public Policy (Maritime 35th class), highly evaluated the export growth potential of the submarine business at the 'Hanwha Group Defense Seminar' held by Hanwha Investment & Securities on the 18th at the FKI Tower (former Federation of Korean Industries building) in Yeouido, Seoul, stating, "Korea, the top shipbuilding powerhouse, has secured sufficient capabilities to lead the global submarine market."

Hanwha Investment & Securities held the "Hanwha Group Defense Seminar" on the 18th at the FKI Tower (formerly the Federation of Korean Industries Building) in Yeouido, Seoul.

Professor Moon explained that amid escalating geopolitical conflicts worldwide, countries around the world are paying attention to the submarine market. He stated, "Submarines are the most cost-effective and destructive strategic weapons that countries with small and medium-sized navies can use to rival major powers."

The global submarine and surface ship market size is estimated at approximately $243 billion, about 325 trillion KRW. Submarine orders are expected from countries such as Canada with 60 trillion KRW (8-12 units), Poland with 5 trillion KRW (2-3 units), and the Philippines with 3 trillion KRW (2 units).

Hanwha Ocean is competing with major submarine-producing countries such as France, Russia, China, and Germany, having achieved the export of Korea's first 3,000-ton submarine. Hanwha Ocean's next-generation submarine, 'Jangbogo-III Batch-II,' is evaluated as the world's highest-performance diesel-electric propulsion submarine equipped with lithium-ion batteries.

Professor Moon said, "Hanwha Ocean has sufficient potential for additional submarine export success in terms of performance and delivery. If supported by government-wide offset trade and export financing support, the scale of submarine exports is expected to grow further."

At the seminar, the impact of competitive defense budget increases by countries worldwide after the Ukraine war on the global defense market was also discussed. Defense budgets worldwide have surpassed $1.8 trillion (about 2,430 trillion KRW) in 2016 to $2 trillion (about 2,700 trillion KRW) in 2021. NATO member countries have agreed to expand defense budgets to more than 2% of GDP by next year, and defense spending continues to increase.

Kim Dae-young, head of Global Business Support at Hanwha Aerospace, said, "Hanwha's selection as the preferred negotiator for Australia's armored vehicle replacement project is a representative case showing that Korea can actively target advanced defense markets with increasing defense budgets," adding, "The Australian Redback order was supplied by meeting the specifications required by the counterpart as soon as possible, creating a sustainable defense export system that can enter not only Australia but also advanced defense markets such as Europe."

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