Korea's arms contractors strike major deals overseas [REWIND 2023]

Industry

Published: 26 Dec. 2023, 14:00

Korea's arms contractors strike major deals overseas [REWIND 2023]

KF-21 Boramae, the country's first domestically developed fighter jet, flies over Seoul Airport in Seongnam, Gyeonggi, during a test flight held a day before the six-day Seoul International Aerospace & Defense Exhibition (ADEX) 2023 officially kicks off. [NEWS1]

Korea's defense contractors struck major multibillion-dollar arms contracts with Poland and Malaysia in 2023, helping the country claim a place as one of the world's key weapons suppliers amid rising geopolitical tensions around the globe.

The Defense Ministry estimated the total value of arms deals secured this year at around $13 to $14 billion, which would make Korea one of the world's 10 largest arms exporters for the second year in a row.

The estimate would be a decrease from last year's figure of $17.3 billion, but the number of importers also increased to 12 from last year's four, with the addition of countries including the United Arab Emirates, Saudi Arabia and Finland.

Hanwha Aerospace’s Australian subsidiary inked a 3.2 trillion won ($2.4-billion) agreement with Australia's Capability Acquisition and Sustainment Group, the country's arms procurement agency, in early December, sealing the sale of 129 Redback infantry fighting vehicles to Australia. The Redbacks will be delivered by 2028.

The arms supplier also bagged a 3.45 trillion won executive contract to supply Poland with 152 K-9 self-propelled howitzers.

The agreement is the second round of orders following a larger framework agreement that Hanwha and Poland reached in July 2022, which secured the supply of 672 K-9 howitzers and 288 Chunmoo multiple rocket launchers in total. Poland placed the first round of orders last August.

KAI signed a $920 million deal with the Royal Malaysian Air Force in May to deliver 18 FA-50M light combat aircraft. The first delivery is to be made in 2026.

Korea’s defense exports were valued at around $3 billion per year from 2010 to 2020, but the figure has spiked since late 2021 and reached a record $17.3 billion in 2022.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]