Defense exports challenged as budgets cut globallyKorea’s exports of defense products are expected to suffer a setback as governments around the globe have been cutting military budgets amid the Covid-19 pandemic, a report showed Sunday.
The global defense budget is anticipated to decrease 2.2 percent annually through 2024, according to the report by the Korea Institute for Industrial Economics and Trade (KIET).
The annual overseas military projects won by Korean businesses have remained flat, hovering around $3 billion from 2016 to 2020.
KIET said the sluggish exports are expected to continue over the next five years.
Over the 2015-2019 period, Korea Aerospace Industries was the largest exporter of defense products at 2.8 trillion won ($2.47 billion), followed by Hanwha Defense and LIG Nex1 with 949.8 billion won and 916.5 billion won each.
Korea was the world’s 10th-largest exporter in the segment over the five-year period.