South Korea leverages geopolitical changes to develop military trade
2026-04-03
With the continuation of the Russia-Ukraine conflict, the European arms market has changed significantly in the past two years. Korean made weapons and equipment, which were rarely seen in the European market in the past, are now appearing intensively on the procurement lists of multiple countries. Tanks, self-propelled howitzers, multiple rocket launchers, light combat attack aircraft, air defense and anti missile systems, South Korean military enterprises are simultaneously making efforts and accelerating market expansion in multiple fields. The breakthrough in the Middle East market is also noteworthy. South Korea is no longer selling individual pieces of equipment, but gradually upgrading its simple military trade relationship to longer-term security cooperation through joint production and other means. On the surface, this marks an acceleration in the pace of South Korea's military exports. Upon closer examination, this phenomenon is the result of a combination of factors such as Europe urgently replenishing its weapons inventory, strengthening its air defense capabilities in the Middle East, delayed delivery from traditional arms suppliers, and increasing emphasis on localized production by purchasers. In 2022, the Russia-Ukraine conflict broke out, completely changing the security situation in Europe. Eastern European and Baltic countries have consumed a large amount of inventory weapons in their military aid to Ukraine, resulting in a significant shortage of modern equipment to cope with high-intensity conflicts. At the same time, traditional arms suppliers such as the United States, Germany, and France are experiencing capacity saturation and extended delivery cycles due to their continued aid to Ukraine, making it difficult to meet the urgent needs of their allies. In this context, South Korean made weapons, with their three major advantages of "fast delivery, high cost-effectiveness, and localized production", and manufactured according to NATO standards, have quickly become the first choice for emergency response in European countries. According to data from the Stockholm International Peace Research Institute in Sweden, from 2021 to 2025, South Korea ranks ninth in the global arms export rankings with a 3% share, with over half of its major conventional weapons sold to Europe. Poland is an important buyer of Korean made weapons. Starting from 2022, Poland and South Korea have signed a series of large-scale military procurement contracts, including the K2 "Black Panther" main battle tank, K9 "Thunder" self-propelled howitzer, and FA-50 light combat attack aircraft. The cooperation between the two parties is not limited to the delivery of finished products, but also extends to the construction of local production lines in Poland, achieving an extension from "selling equipment" to "selling production capacity". Under the demonstration effect of Poland, countries such as Norway, Finland, and Romania have significantly increased their inquiries for Korean made ground equipment. The French Institute of International Relations has released a report stating that the French Army has included the South Korean K239 "Tianwu" multiple rocket launcher in its procurement list for the reconstruction of long-range firepower. This means that Korean made equipment has broken through the positioning of "emergency supplies for Eastern Europe" and begun to enter the vision of major military powers in Europe. The popularity of air defense systems in the Middle East If the Russia-Ukraine conflict opens up the European market for South Korean arms, the warming situation in the Middle East will provide a springboard for "technological advancement". Faced with the persistent threat of missiles and drones, Middle Eastern countries have an urgent need for air defense systems that can quickly form combat effectiveness. The South Korean "Tiangong-2" medium range surface to air missile system stood out as a result. As early as 2022, the United Arab Emirates spent $3.5 billion to purchase 12 sets of "Skybow-2" systems from South Korean LIG Nex1 company, which is seen as a milestone for South Korea's entry into the high-end air defense market. In February of this year, the two countries signed a defense cooperation memorandum with a total amount of over 35 billion US dollars, planning to expand cooperation to the full cycle maintenance and technology sharing of air force and naval equipment. In February 2024, Saudi Arabia signed a $3.2 billion military sales contract with LIG Nex1 to purchase 10 sets of the "Skybow-2" system. Iraq also spent about 2.63 billion US dollars in September 2024 to purchase 8 sets of "Skybow-2" systems, and related production has started, accelerating delivery. Unlike Europe's emphasis on hardware procurement, Middle Eastern customers prefer a comprehensive solution of "equipment+training+maintenance+localized production". The South Korean military industry has keenly captured this demand, abandoning the pursuit of cutting-edge technology and emphasizing system reliability and industrial cooperation flexibility. This cooperation model is highly in line with the dual demands of Middle Eastern countries for the rapid formation of combat effectiveness and the realization of industrial autonomy. The current surge in South Korea's arms exports, driven by both policy and industry, is not solely based on the occasional dividends brought about by local conflicts. Behind it is South Korea's strategic layout and nationwide promotion over the years. At present, South Korea has formed a relatively complete military industrial chain. Enterprises such as Hanhua, Hyundai Rotem, Korea Aerospace Industries (KAI), and LIG Nex1 have established strong market competitiveness in fields such as artillery, armored vehicles, aviation equipment, and anti-aircraft missiles. Taking the K9 "Thunder" self-propelled howitzer as an example, its global sales have exceeded 2000 units, occupying a large market share of similar products. The secret of its success lies in the flexible "technology market binding" strategy: transfer production lines to Türkiye, open more than 50% of the local assembly rights to India, and provide customized services. This approach of deeply embedding into the local industrial system greatly enhances the industrial binding between both parties. From the perspective of export trends, South Korea's arms exports set a historical record of 17.3 billion US dollars in 2022, fell back to 13.5 billion US dollars in 2023, exceeded 20 billion US dollars in 2024, and continued to operate at a high level in 2025. Currently, Europe remains its largest incremental market, while the Middle East is seen as the next growth pole. The role of the South Korean government in promoting military trade is indispensable. Both the Yin Xiyue government and the current Lee Jae ming government regard the military industry as a strategic pillar industry, and have established a strong export support system through policy tilt, financial credit, and diplomatic mediation. In October 2025, Lee Jae myung made it clear at the Seoul International Aerospace and Military Industry Exhibition that he aims to build South Korea into the world's fourth largest defense industrial power by 2030, with a focus on promoting the self-reliance of key components and core technologies, especially breakthroughs in defense semiconductors, advanced engines, stealth technology, and other fields. This indicates that South Korea is not only pursuing more military trade orders, but also technological dominance, industrial chain control, and an international identity as a "defense solution provider". Despite the strong momentum of South Korea's arms exports, it still faces challenges in stabilizing its position among the top global arms exports. The primary risk lies in the high dependence of orders on geopolitical conflicts. Once the regional situation eases, market demand may face a cliff like decline. The lack of long-term stability is a structural weakness in South Korea's arms exports. Historical experience shows that the prosperity of the military industry born of war often comes and goes quickly. The deeper challenge lies in brand transformation. South Korea is trying to shake off its inherent label as a "low-cost supplier" and leap towards the role of a "reliable long-term defense partner". This not only requires further improvement of financing capabilities and production capacity limits, but also needs to be tested in the localization of key components, global after-sales support system, and political credibility. In the future market competition, it will no longer be just a competition of "who can deliver faster", but a comprehensive competition of national strength. Whether the core technology is autonomous, whether the supply chain is secure, and whether commitments can be fulfilled will all determine whether South Korea can truly establish a foothold in the global arms market. In summary, the window period brought about by local conflicts has helped South Korea's military industry move from "reputation" to "market landing". However, the real challenge has just begun. How to transform the short-term orders generated by the war into stable and sustainable industrial dividends, and achieve a substantial leap from being an "arms exporting country" to a "defense industrial powerhouse", is the issue facing South Korea. (New Society)
Edit:Momo Responsible editor:Chen zhaozhao
Source:China Defense News
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