South Korea’s defense industry is emerging as a major player on the global stage. Amid the prolonged conflict between Russia and Ukraine, South Korea is actively expanding its exports of defense equipment to Europe to meet the growing demand in the region.
The South Korean Defense Acquisition Program Administration announced on Wednesday (July 10) that South Korea’s leading defense contractor, Hanwha Aerospace, has signed a weapons procurement agreement with the Romanian Ministry of Defense worth up to 13 trillion South Korean won (approximately 9.47 billion US dollars), including the purchase of 54 K9 self-propelled howitzers and 36 K10 armored ammunition resupply vehicles. This marks the largest weapons procurement project in Romania in nearly seven years.
Romania becomes the ninth buyer of the K9 howitzer, following countries such as Australia, Egypt, India, Norway, Estonia, Turkey, Poland, and Finland. Other NATO member countries, including Poland, Norway, Finland, and Estonia, have also decided to adopt the K9.
Following Russia’s full-scale invasion of Ukraine, Hanwha Aerospace’s export revenue has increased by 11 times, reaching 1.1 billion US dollars, with a 350% increase in stock prices. To meet the growing demand, Hanwha added hundreds of new employees last year.
NATO Secretary-General Jens Stoltenberg stated at a press conference during the NATO summit in Washington on Wednesday (10th) that NATO is “exploring how to enhance closer cooperation with South Korea.” He mentioned that South Korea possesses advanced defense industries and holds great potential for cooperation in technology and networks.
During the NATO summit in Washington, South Korean President Yoon Suk-yeol also introduced South Korea’s defense equipment to leaders from countries such as the Czech Republic, Finland, Sweden, and Canada.
At a dinner hosted by U.S. President Biden at the White House, President Yoon Suk-yeol also had a discussion with Ukrainian President Zelensky. South Korea’s National Security Office held a press conference on the same day, stating that South Korea will provide the necessary assistance to Ukraine and its people.
Last month, after North Korea and Russia signed a Comprehensive Strategic Partnership Treaty, including mutual defense commitments, South Korea’s government stated that it would reconsider providing weapons assistance to Ukraine to counter Russian invasion. Prior to this, South Korea’s assistance to Ukraine was limited to non-lethal supplies.
South Korea’s arms exports have steadily increased from 20 to 30 billion US dollars in the late 2010s to 73 billion US dollars in 2021, jumping to 173 billion US dollars in 2022 and 135 billion US dollars in 2023. South Korea’s defense export target for 2024 is set at 20 billion US dollars.
Since the Yoon Suk-yeol administration took office, the defense industry has been viewed as a national strategic sector and an engine for economic growth. At the end of 2022, the South Korean government set the goal of making South Korea the fourth largest arms exporting country globally by 2027.
A report released in March this year by the Stockholm International Peace Research Institute (SIPRI) showed that South Korea ranked tenth in arms exports among countries up to 2023, with the largest importers being Poland, the Philippines, and India.