"This Year’s Defense Exports Reach $20 Billion"… Government Provides Customized Support Linked to ODA

Inseonghwan, the 2nd Deputy Director of the National Security Office, is presiding over the '5th Defense Export Strategy Evaluation Meeting' on the 12th at the Presidential Office in Yongsan, Seoul. (Photo by the Presidential Office)

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Senior officials from the Presidential Office, government ministries, and the defense industry held a meeting on the 12th and agreed to work together to achieve $20 billion in defense exports this year. To this end, the government plans to develop customized defense export plans by country and is also considering expanding financial support for companies.

Inseonghwan, the 2nd Deputy Director of the National Security Office, chaired the "5th Defense Export Strategy Evaluation Meeting" at the Yongsan Presidential Office on the same day to discuss current issues and strategies related to defense exports.

The Presidential Office explained, "The meeting was held to evaluate the achievements and prospects of the rapidly growing domestic defense industry since the current administration took office and to explore ways to strategically support defense companies in pioneering overseas markets."

The attendees agreed to closely cooperate to achieve this year's defense export target of $20 billion. Building on the momentum of having completed export contracts with six countries including Poland and Peru in the first half of this year, they expressed their determination to export weapon systems to more than 15 countries in the remaining period to meet the goal.

Korea has achieved an average of over $15 billion in defense exports annually over the past two years, and last year successfully exported defense products to 12 countries, eight more than the previous year.

Defense companies emphasized that as international conflicts have become frequent recently, major defense buyers are demanding 'comprehensive packages' including technology transfer and unit establishment, and that full government support is necessary to meet these demands.

In response, the Ministry of National Defense and the Defense Acquisition Program Administration (DAPA) promised to continue high-level consultations by country and, if necessary, form a joint government negotiation team to provide active support.

Additionally, the government decided to promote customized export support by country. It plans to expand cooperation with existing partner countries and propose the most optimized methods tailored to the security threats of countries seeking new cooperation, thereby enhancing the competitiveness of Korean defense companies.

In particular, the government will continue inter-agency communication and cooperation at the national level to provide financial support, which is an essential requirement for global defense cooperation.

The government and defense companies agreed to further activate national defense and military logistics joint committees by advancing 'K-Defense' exports and use these as leverage to expand cooperation into diplomacy, security, and industrial sectors.

Since there is a 'lock-in effect' where cooperation between weapon system exporting and importing countries is enhanced not only in industry but also in security, the strategy is to broaden the horizon of international cooperation through the expansion of defense exports.

Plans are also underway to expand export models that combine defense exports with Official Development Assistance (ODA).

For example, if a Korean defense company exports aircraft, the government would establish an aircraft technology personnel training program at a university in the importing country based on ODA. The Presidential Office explained, "Going forward, we will further expand the scope of cooperation through defense exports to include 'defense + industry,' 'defense + education,' and 'defense + research and development.'"

Deputy Director In said, "In the future, defense exports and the defense industry will play a very important role in the national economy and job creation," adding, "For the success of K-Defense, companies need to maintain a more magnanimous stance and continue fair competition."

Attendees at the meeting included senior officials from the Ministry of National Defense, Ministry of Economy and Finance, Ministry of Foreign Affairs, Ministry of Trade, Industry and Energy, Defense Acquisition Program Administration, as well as high-ranking representatives from companies and associations such as Hanwha Aerospace, Hyundai Rotem, LIG Nex1, KAI, HD Hyundai Heavy Industries, Hanwha Ocean, Poongsan, and the Korea Defense Industry Association.

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