One of the major arms deals South Korea has secured this year is a $920 million deal to supply Malaysia with 18 FA-50s, a light fighter jet that has captured the world’s attention. According to Business Insider, the deal is the result of more than half a century of rapid development that has made South Korea one of the world’s largest arms exporters.
South Korea's defense industry began to be built in 1968 under then-President Park Chung-hee to meet the country's needs. The South Korean government supported the development of the industry with subsidies and other incentives. Since 1977, South Korea has gradually exported weapons abroad. According to the Stockholm International Peace Research Institute (SIPRI), by 2016, South Korea had become the 13th largest arms exporter in the world.
As South Korea's defense products have improved in quality, so have its arms sales. According to the SIPRI report, South Korea is the largest arms supplier among the world's four largest emerging arms suppliers, accounting for 1.5% of total global arms transfers between 2010 and 2019. SIPRI data also shows that South Korea is the world's eighth largest arms exporter, accounting for 2.8% of total global arms transfers between 2017 and 2021.
Compared to the 2012-2016 period, the value of Seoul’s arms exports during this period increased by a “staggering” 177%. This was a larger increase than any other country among the 10 largest arms exporters at that time. In 2020, South Korea’s defense exports amounted to about $3 billion.
This figure will increase to $7.2 billion in 2021 and more than double to $17 billion in 2022. South Korea's rise in the global arms export rankings reflects the country's desire to shift the focus of its defense industry from the domestic market to the international market.
One reason for South Korea’s success is that it sells quality products at lower prices than other major arms suppliers in the world. In January 2022, South Korea signed a deal to sell Cheongung II KM-SAM surface-to-air missiles to the United Arab Emirates (UAE) for a total value of $3.5 billion.
In August of the same year, Poland signed a $5.8 billion contract to buy 180 K2 main battle tanks and 212 K9 self-propelled howitzers from South Korea. This was part of a larger multi-billion dollar deal in which Poland would buy 980 K2 tanks, 648 K9 howitzers and 48 FA-50 fighter jets.
In October, Poland placed another order with South Korea for 288 K239 Chunmoo rocket artillery systems. This decision was made after Poland realized that the United States could not meet its request for 500 M142 High Mobility Artillery Rocket Systems (HIMARS).
South Korean arms manufacturers, meanwhile, have burnished their reputations with speedy deliveries. The UAE received its first KM-SAMs within a year of signing a contract to purchase them, while Poland received its first batch of 24 K9 howitzers and 10 K2 tanks in December last year.
The South Korean government is placing special emphasis on increasing its share of the global arms market. At a meeting with defense industry representatives in November 2022, South Korean President Yoon Suk-yeol called the defense industry “the country’s future growth engine and the backbone of other advanced technology industries.”
According to Mr. Yoon Suk-yeol, it is necessary to improve the research and development environment to facilitate the defense industry to boost exports. President Yoon Suk-yeol also said that he wants to make South Korea the world's fourth-largest arms exporter, behind only the US, Russia and France based on SIPRI data by 2021. To achieve that, South Korea will have to overcome a number of problems, including a shortage of human resources and dependence on foreign components.
LAM ANH
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