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South Korea thus prioritises the acquisition of
                                                                       locally developed and manufactured defence
                                                                       articles.


                                                                       South Korea allocated US$47.712 billion or 13
                                                                       per cent of its government spending to its 2022
                                                                       defence budget. This was a US$1.547 billion or
                                                                       3.4 p percent increase compared to the previ-
                                                                       ous year. The 2022 defence budget contained
                                                                       US$33.129 billion for force operations which
                                                                       includes expenditure for military logistics, facil-
                                                                       ities, and education and training of military
                                                                       forces.

                                                                       Another  US$14.582  billion  was  dedicated  to
                                                                       force enhancement, an expenditure used for
                                                                       securing advanced weapon systems to enhance
                                                                       and maintain defence capabilities in prepara-
        Early this year, KAI finalised a contract to supply Malaysia with eigh-  tion of all kinds of possible security threats.
        teen FA-50 light fighters. The FA-50, a multi-role aircraft modelled
        after the T-50 Golden Eagle advanced trainer aircraft, underscores   Compared to the previous year, the Defense
        KAI’s expanding global footprint in the aerospace industry. With this   Ministry has proposed to raise expenditures by
        export deal, the total exports of KAI’s domestically produced KT-1   around 17 per cent to advance the development
        and T-50 series aircraft may reach approximately 240 units globally.
                                                                       of an indigenous three-axis defence system.

        The next goal of the nation’s sole jet maker this year is to win the
        preferred bidder status for Egypt’s project to locally produce the   The total defence spending is estimated at
        jet trainers and lightweight fighters in collaboration with a foreign   approximately 59.6 trillion won (US$45.1 billion),
        company, KAI CEO Kang Gu-young said.                           a 4.5 per cent increase from last year, according
                                                                       to the ministry.

        It will be KAI’s first foray into Africa’s military aircraft market if it   An estimated 41.8 trillion won is earmarked for
        wins the contract to export more than 100 T-50 trainer aircraft to   expenditures related to force operations and
        Egypt. “Egypt’s strategic geographic location (between         maintenance, reflecting a 4.2 percent on-year
        the northeast corner of Africa and Western Asia) would         increase. The allocation encompasses costs
        then open many other doors of opportunity,” Kang opined.       associated with operating and sustaining mil-
                                                                       itary equipment and facilities, as well as other
                                                                       outlays like personnel salaries, benefits, training
        KAI’s ultimate objective is to export its aircraft to the United States,   and education.
        a market for the world’s greatest fighter aircraft makers. That would
        elevate KAI’s status and provide momentum for its next vision of
        becoming a key player in the international aerospace industry,   During the past five years, South Korea’s defence
        Kang added. Nevertheless, South Korea continues to be the United   budget has been growing at an average rate of
        States’ third largest country for arms exports after Saudi Arabia and   6.3 per cent per year.
        Australia based on the total export volume from 2009 to 2021, thus
        a substantial market for U.S. defence contractors.             In particular, the budget for force enhance-
                                                                       ment reflects a total of 32 key weapon system
        Force Modernisation                                            programmes including the light aircraft carrier
                                                                       programme, microsatellite programme, low-al-
        To complement its national defence strategy, South Korea has been  titude missile defence (LAMD) interception
        pursuing force modernisation programmes for some years, and the  system, mass production of light armed heli-
        most updated programme is known as Defense Reform 2.0. One of  copters (LAH), F-35A performance improvement
        the goals of the programme is to build an effective and capable  programme, and large-sized transport aircraft
        force that is able to meet emerging security threats while limit-  programme.
        ing reliance on foreign defence technology. It also encourages the
        development of homegrown technology, as well as the local produc-  South Korea’s acquisition of weapons systems
        tion of weapons systems both in the form of parts or components,   from overseas are administered through foreign
        and complete systems.
        ASIAN DEFENCE TECHNOLOGY                                                      SEPTEMBER-OCTOBER 2023 | 31
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