Page 16 - Defense & Security 2023 - Day 1

Tailored for Export

South Korea is looking shift its defence Korean won (US$17.9 billion). That’s more has succeeded deals to sell KT-1 and T-50s
industry from one that is centred on internal than double the figure of 9.5 trillion won to Indonesia, Turkey, Peru, Iraq and the
demand to one that is focussed on ex- in 2021. “Rising demand from Europe and Philippines. KAI is seeking to export T-50
ports. Korean defence firms are now making Asia for Korean manufacturers to provide to several countries including the United
growing and rapid inroads into the defence military/defence equipment, including tanks, Arab Emirates. Early this year, KAI finalised
market in the region, underscored by the artillery, and airplanes, are pushing up ex- a contract to supply Malaysia with eighteen
government’s ambitions of transforming the port volumes,” said the bank’s second half FA-50 light fighters. The FA-50, a multi-role
country into an arms-exporting powerhouse. outlook investment report on South Korea. aircraft modelled after the T-50 Golden Eagle
Defence firms in South Korea have tai- advanced trainer aircraft, underscores KAI’s
lored export strategies, optimised to the Humble Origins expanding global footprint in the aerospace
demands of customer countries by region, The South Korean defence industry began industry. With this export deal, the total
and have been conducting market develop- with production of rifles which imitated exports of KAI’s domestically produced
ment activities in future effective markets M-16, the ammunitions and other small KT-1 and T-50 series aircraft may reach
in Europe, Africa, the Middle East, and Latin arms not significantly considered advanced approximately 240 units globally.
America. According to International Trade technology. It rapidly developed and pro-
Administration, South Korea’s defence bud- duced more advanced defence products The next goal of the nation’s sole jet maker
get is the world’s 10th largest in size and with the K-1 88-tanks, manufactured by this year is to win the preferred bidder sta-
tus for Egypt’s project to locally produce
it is also the world’s 10th largest defence Hyundai, based on General Dynamics’ M1 the jet trainers and lightweight fighters in
exporter. South Korea is projected to gen- Abrams, and K200-KIFV (Korea Infantry collaboration with a foreign company, KAI
erate 29.7 trillion won (US$23.4 billion) in Fighting Vehicle), manufactured by Daewoo CEO Kang Gu-young said. It will be KAI’s first
defence exports by 2027. Last year, South and based on the American AIFV) in the foray into Africa’s military aircraft market
Korean arms exports grew by 140 per cent mid-1980s to K-1 basic trainer aircraft, made if it wins the contract to export more than
to US$17.3 billion from US$7.25 billion in by KAI, the Chang Bogo class submarine 100 T-50 trainer aircraft to Egypt. “Egypt’s
2021, the highest arms exports in the history (upgraded German 209-type, produced by strategic geographic location (between the
of South Korea. DMSE), in 1990s, K-50 supersonic advanced northeast corner of Africa and Western
trainers and multirole light fighters devel- Asia) would then open many other doors
According to data from the Stockholm oped by KAI, and Son Won Il class sub- of opportunity,” Kang opined.
International Peace Research Institute marines (German 214-type submarines),
(SIPRI), South Korea’s share of the global produced by Hyundai in recent years. KAI’s ultimate objective is to export its air-
arms exports over a five-year period end- Today, South Korea has already become an craft to the United States, a market for the
ing in 2021 was 2.8 per cent, making it the aggressive competitor with Europe in high- world’s greatest fighter aircraft makers.
eighth largest in the world. By comparison, end military components, matching Western That would elevate KAI’s status and provide
during the preceding five-year period, South standards for quality and performance. The momentum for its next vision of becoming
Korean arms exports accounted for just 1 government is developing defence industry a key player in the international aerospace
per cent of the global output for 13th place export markets and promoting marketing industry, Kang added. Nevertheless, South
overall. activities. Korea continues to be the United States’
third largest country for arms exports after
According to Morgan Stanley, South Korea Saudi Arabia and Australia based on the
has become a major exporter of military Aerospace Defence Booster total export volume from 2009 to 2021,
and defence equipment and supplies, with The aerospace defence industry pushes the thus a substantial market for U.S. defence
2022 exports totalling 22.9 trillion South South Korean arms exports. The country contractors.

16 NOVEMBER-06-2023 WWW.GBP.COM.SG/DAILY NEWS