Korea aims to become world's No. 4 arms exporter

President Yoon Suk-yeol saluted in front of Korea’s supersonic fighter jet KF-21 at the Korea Aerospace Industries’ headquarters in Sacheon, South Gyeongsang, on Thursday. [PRESIDENTIAL OFFICE]

Increasing Korea's defense exports and becoming the world's No. 4 seller of arms in 2027, from No. 8 in 2021, has been established as a priority by the government.

In the first 11 months of the year, Korea's defense exports totaled $17 billion, a record. Through 2020, weapons exports had been running at about $3 billion annually. They hit $7.25 billion won in 2021, for a 2.8 percent market share.

If the 2027 goal is reached, Korea's share of global defense exports will be 5 percent.

The plan was announced by the Ministry of Trade, Industry and Energy and the Ministry of National Defense during a meeting on defense exports headed by President Yoon Suk-yeol at the headquarters of Korea Aerospace Industries in Sacheon, South Gyeongsang, on Thursday.

The Industry Ministry will be allocating 50 billion won ($38 million) annually to strengthen Korea’s defense industry. Goals include the development of 40 key materials and parts, such as carbon composite materials, and educating 3,300 people in relevant fields, including machinery and aviation materials.

The ministry plans to release a more detailed plan, which will include a goal of a 10 percent market share in carbon composite materials, next month.

An estimated 1 trillion won will be invested in government-private sector technological development, including transferring defense technologies from state-owned institutions to the private sector and using innovative technologies developed from the private sector in national defense.

The Defense Ministry will be allocating a minimum 10 percent of its annual budget to R&D spending by 2027 and create a 120-billion-won defense technology innovation fund that will fund start-ups. It will also establish a start-up incubation project, where some 20 or so companies will be selected every year through 2026 for a wide range of support.

The Korean military will provide post-sale services to countries that purchase Korean defense goods, including the sharing of operational know how through joint training and technology education.

Diplomatic sales will be increased.

The Industry Ministry said it will link the defense sales efforts to the strategies of major Korean industries.

Yoon stressed that the defense industry is a "future growth engine" and that it will play a central role in leading Korean high-tech.

He stressed the importance of technological competitiveness in developing a game changing weapons system for future warfare.

“We need to create an ecosystem so that the defense industry can grow on its own,” Yoon said. “Defense exports not only contribute to our own security but also to the peace and stability of international society.”

The president said the government will increase its support of defense exports so that it can increase the chances of winning large overseas projects, including nuclear power plant and infrastructure deals.

“From a country that wasn't able to build a weapon of our own, today we have become one of the leading defense developers,” Yoon said. “This year we have achieved an all-time record in defense exports.”

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]