Korean Defense SMEs Set Out to Conquer the Polish Market

K-Defense Faces a Massive Wall in the Global Market
Large and Small Firms Must Join Forces to Overcome Barriers at MSPO 2025

On September 3 (local time), Yoon Sunghyun, Director of the Defense Industry Promotion Division at the Defense Agency for Technology and Quality, met with reporters at the International Defence Industry Exhibition (MSPO 2025) held in Kielce, Poland. He stated, "When you look around this exhibition hall, you can feel the enthusiasm for K-Defense in Korea, but in the international market, it is clear that we still need to make much more effort."

Yonhap News Agency

Director Yoon said, "This time, the influence of European and American defense companies is once again apparent," adding, "Only when we overcome this barrier can K-Defense truly stand tall on the global stage." After hearing Director Yoon's remarks, the atmosphere at the booths of American defense giants such as Lockheed Martin and Boeing at the 'MSPO 2025' exhibition was relaxed and confident, befitting their status as dominant players in the international defense market.

These companies minimized the number of exhibits and left wide open spaces in their booths. Rather than focusing on individual products, they concentrated on projecting an innovative corporate image. They were so meticulous about managing their image that even a Korean broadcast cameraman was prevented from filming the open booth of an American defense company without prior permission. In contrast, Korean companies filled their booths with as many exhibits as possible, eager to showcase every product they could.

For Korean companies, which are still in urgent need of product marketing, the refined image management of the large American and European defense firms may seem like an insurmountable barrier. In order for K-Defense to overcome this enormous wall, as the phrase about ivy goes, "even if it is just a handspan, we must climb together, hand in hand."

The Defense Acquisition Program Administration, the Defense Agency for Technology and Quality, and the Korea Defense Industry Association jointly operated the 'Integrated Korea Pavilion' at this MSPO 2025, supporting the overseas expansion of domestic small and medium-sized defense companies. This is based on the belief that only when large corporations and small and medium-sized enterprises join forces can this barrier be overcome. The idea is that K-Defense will be truly complete only when not just major defense companies but also small and medium-sized enterprises with strong technologies enter the global value chain.

Ten domestic small and medium-sized defense companies are participating in the Integrated Korea Pavilion, showcasing a range of products in high local demand, including electronic jammers, anti-drone systems, as well as equipment for protection, electronic warfare, and surveillance and reconnaissance.

The ten companies-Kyungchang Industry, DnB, Vistacom, Shinan Information & Communication, Arion Communication, Xbeam Tech, Woosung C-Tech, Contromax, Cox, and Taekyung Electronics-have set up booths in the Integrated Korea Pavilion. The Defense Acquisition Program Administration and the Defense Agency for Technology and Quality are actively supporting networking activities between Korean companies and overseas buyers, and helping Korean companies enter foreign markets through the pavilion.

At this MSPO 2025, the Integrated Korea Pavilion was placed at the center of the Korean company exhibition area, allowing visitors to easily view the displays of domestic companies, including small and medium-sized enterprises, at a glance. This arrangement improved upon previous overseas defense exhibitions, where dispersed booths had reduced promotional effectiveness, and maximized the overall promotional impact of Korean defense companies by centering activities around the Integrated Korea Pavilion.

The small and medium-sized enterprises participating in this exhibition requested increased government support for accessing overseas information and business partners. They also asked that when major Korean defense companies pursue local production and technology transfer as part of their localization strategies in export markets, both the defense conglomerates and the government help ensure that small and medium-sized enterprises can actively participate.

An official from a participating major defense company said, "In many cases, large companies integrate parts made by small and medium-sized enterprises into their systems. As K-Defense expands its export scope to include defense solution services such as maintenance, repair, and overhaul (MRO) and integrated product support (IPS), we are looking for ways for related small and medium-sized enterprises to participate more actively." Director Yoon Sunghyun added, "There is still much room for K-Defense itself to evolve. Now, large corporations and small and medium-sized enterprises must join forces to overcome these giants-Lockheed Martin, Raytheon, Boeing-whose very names are formidable."