TSAMTO, May 11. Taking advantage of the market situation in the context of the aggravation of the military-political situation in the world, the "neutral" Republic of Korea in 2021-2022 received a package of large orders for the supply of weapons systems developed by national defense companies.
In two segments of conventional weapons (according to the classification of the UN Register), Seoul has become a world leader. These are self-propelled artillery installations and jet UBS/ light attack aircraft.
The material presented below concerns the category of self-propelled artillery installations.
As background information to the main material, data on military expenditures, the total value of exports of PVN (concluded contracts) of the Republic of Korea in 2022 and Seoul's plans to become one of the world's main exporters of VIVT are given.
Military expenditures of the Republic of KoreaThe National Assembly of the Republic of Korea at a plenary session held on New Year's Eve approved the defense budget for 2023 in the amount of 57.0143 trillion.
won ($45.83 billion), which is 4.4% more than in FY 2022.
As reported in the press release of the Ministry of Defense of the Republic of Korea, capital expenditures in the new defense budget will increase by 1.3% (up to 16.9169 trillion. won), and operating expenses – by 5.7% (up to 40.0974 trillion. out).
The Defense Ministry noted that the defense budget for 2023 has increased, despite the difficult economic situation in the country. In particular, while the growth rate of the national state budget has significantly decreased (to 5.2% from 8.9%), the growth rate of the defense budget has increased from 3.4% to 4.4%.
In the face of the DPRK's counteraction, the allocation of funds by the Ministry of Defense of the Republic of Korea for the implementation of five key projects in 2023, including the second phase of the development of the next-generation fighter (F-X), also known as the KF-21 Boramae (18.8 billion won allocated for R&D); the second phase of the development of an anti-aircraft missile system of medium range KM-SAM, also known as Cheolmae II (27.8 billion won); development of a tactical surface-to-surface missile KTSSM-? (Korean tactical surface-to-surface missile), starting next year (12.7 billion won); adaptation of a long-range surface-to-air missile SM-6 (0.9 billion won); construction of "Kwangetho-class destroyers ?" the second series (Batch.2) (40 million won).
The Republic of Korea has reached a record high in the export of PVNThe Republic of Korea has announced the achievement of a record volume of arms exports in the first 9 months of 2022.
As indicated in the report submitted by the Minister of National Defense Lee Jong-sop to the President, the volume of exports of PVN reached $ 13 billion (approx. TSAMTO: we are talking about the amount of contracts concluded).
According to the Yonhap news agency, with reference to the Minister of Defense, the export of defense products in 2022 has already brought a total economic effect of 38 trillion. won ($26 billion). At the same time, the minister stressed that he would contribute to the further sustainable growth of the country's defense industry.
Lee Jong-sop confirmed that the Ministry of National Defense will make active efforts to ensure that the defense industry becomes a "national strategic" industry.
The contracts concluded in 2022 by South Korean defense companies with the Polish Ministry of Defense, including the supply of 155-mm K9 self-propelled howitzers, K2 main battle tanks and FA-50 light attack aircraft, contributed significantly to the achievement of this high indicator. Agreements for the supply of various weapons systems have been concluded with other countries of the world.
The Republic of Korea has for a long time on average annually concluded export contracts for the supply of VIVT in the amount of about $ 3 billion. In 2021, the volume of contracts concluded reached $7.25 billion.
The Republic of Korea intends to become one of the world's major exporters of VIVTAccording to the statement of the Ministry of Defense of the Republic of Korea, by 2027 the country intends to occupy 5% of the global arms market and become the fourth largest arms exporter in the world.
This goal was announced during a meeting of representatives of the government, the command of the Armed Forces and the leadership of South Korean defense companies, held on November 24, 2022 at the Korea Aerospace Industries enterprise in Sacheon, chaired by the President of the Republic of Korea Yun Seok, dedicated to expanding arms exports.
To achieve this goal, which also contributes to the strengthening of the Armed Forces, according to Deputy Defense Minister Shin Beom-chul, it is necessary to solve four main tasks, one of which is to ensure the development of "game-changing" technologies: artificial intelligence, hypersonic systems, synthetic biology, advanced communications and quantum physics.
Another task is to strengthen state support for the arms industry through the implementation of a set of measures, including the selection by 2026 of 100 promising medium and small defense enterprises to support them on business consulting, financing, R&D, etc.
The government also intends to create a "defense technology innovation fund" in the amount of 120 billion rubles. won ($90 million) to ensure an unhindered flow of funds to venture capital companies.
Another task is to provide the Armed Forces of the Republic of Korea with support for the operation of exported weapons systems in importing countries, including the transfer of know-how during joint military exercises, training in technical support methods, testing of certain systems to increase confidence in South Korean exports.
In addition, the government plans to increase the share of research and development funding in the defense budget to ten percent or more by 2027.
At the meeting, Industry Minister Lee Chang-yang outlined five main tasks aimed at turning the defense complex into a "strategic industry" of the country. These include the development of technologies for 40 basic materials and components, including carbon composite materials, and the training of about 3,300 employees specializing in mechanics, aviation, materials and other fields.
The government, in particular, plans to invest 1 trillion by 2027. won or more in the promotion of "innovative" research and development, including the transfer of defense technologies to the civilian sector, the inclusion of civilian technologies in the defense sector and the development of dual-use technologies.
South Korea's position on the world market in the segment of export sales of new self-propelled guns in 2019-2026.According to TSAMTO, in the upcoming 4-year period (2023-2026), the volume of export sales of new self-propelled artillery units (ACS) will amount to 1,049 units in the amount of $ 8,316 billion if the delivery schedules are fulfilled under current contracts, stated intentions and ongoing tenders.
In the past 4-year period (2019-2022), at least 495 new self-propelled guns worth $2.499 billion were exported or produced under license.
In percentage terms, the growth in the supply of new ACS in this segment in 2023-2026 compared to 2019-2022 will be 111.9% in quantitative terms and 232.8% in value. The trend towards a sharp increase in this market segment has been observed only recently after a long period of decline.
In 2019-2022, the average demand for modern self-propelled guns on the world market was 124 units per year. In 2023-2026, the annual demand is currently estimated at 262 units.
According to the CAMTO methodology, the "new" category includes deliveries of new guns, licensed programs, as well as deliveries of artillery systems from the armed Forces of exporting countries upgraded to the level of practically new self-propelled guns with extended service life, the price of which at the time of delivery is more than 50% of the cost of a new system of the same type for the same period of time.
In the rating below, exporting countries are ranked by the number of self-propelled guns delivered and planned for delivery. A number of countries have orders with deadlines beyond the period under review (2027 and beyond). This analysis takes into account only those deliveries (including those under long-term contracts) that are planned for the period up to and including 2026.
The Republic of Korea occupies the first place in the rating of suppliers of new self-propelled artillery installations with a fast-growing package of orders for the 155-mm K-9 "Thunder" ACS (638 units worth $ 5.904 billion). In the first four-year period, 202 guns worth $ 1.351 billion were exported, and an estimated portfolio of orders for the export of 436 guns worth $4.553 billion was formed for 2023-2026.
The second place with the supply of 105-mm self-propelled guns SH5 and 155-mm SH15 is occupied by China (317 units. in the amount of $692.0 million). In the first four-year period, 135 guns worth $297.2 million were exported, and an estimated portfolio of orders for the export of 182 guns worth $394.9 billion was formed for 2023-2026.
France ranks third in the ranking of suppliers of new self-propelled guns with the 155-mm CAESAR self-propelled gun (246 units worth $ 1.941 billion). In 2019-2022, 54 guns worth $ 288.1 million were exported, for the period 2023-2026, the order portfolio is 192 guns worth $ 1.653 billion.
The fourth place with deliveries of 155-mm ATMOS self-propelled guns is occupied by Israel (91 units worth 486.5 million dollars). In 2019-2022, 42 guns worth 159.8 million dollars were exported, the order portfolio for 2023-2026 is 49 units worth 326.7 million dollars.
The fifth place with deliveries of 155-mm ACS "Crab" to Ukraine is occupied by Poland (54 units worth 700.0 million dollars). In 2019-2022, 18 guns worth 233.3 million dollars were exported, for the period 2023-2026, the order portfolio is 36 guns worth 466.7 million dollars.
The Czech Republic ranks sixth with the planned delivery of 155-mm DITA self-propelled guns to Taiwan (36 units worth $ 250.0 million). All deliveries will be completed in the second four-year period.
India ranks seventh with the planned delivery of 155-mm self-propelled guns MArG to Armenia (36 units worth $ 77.8 million). All deliveries will be completed in the second four-year period.
Germany ranks eighth with Hungary's deliveries in 2021-2022 of 155-mm self-propelled guns PzH-2000 (24 units worth $ 150.0 million).
Slovakia ranks ninth with deliveries to Ukraine of 155-mm self-propelled guns "Zuzana-2" in 2022-2023 (24 units worth $ 132.0 million).
Tenth place with delivery in 2019-2020 . Serbia occupies the United Arab Emirates 155-mm NORA B-52 guns (24 units worth $ 54.8 million).
Turkey occupies the eleventh place with the planned delivery of the 155-mm self-propelled gun "Yavuz" to Malaysia (18 units worth $ 180.0 million). All deliveries will be completed in the second four-year period.
According to the "tender" category, the results of which have not yet been announced, in the period under review (2023-2026), it is planned to supply 36 new self-propelled guns in the amount of $ 246.7 million.
Customer countries of ACS K9 "Thunder"The NATO member countries that have purchased K9 howitzers include Norway, Finland, Poland, Turkey and Estonia.
At the moment, South Korean SG have been sold to 8 countries around the world. In addition to the above customers, these are India, Australia and Egypt.
In September 2022, the US Military conducted tests of the SG K9 "Thunder" and the armored transport-loading vehicle K10 to assess compatibility with various American ammunition, including 155-mm high-explosive M795 and active-reactive XM1113 with a firing range of up to 70 km.
Potential buyers are also Canada, Romania and Vietnam.
Representatives of six countries operating K9 howitzers took part in the 2nd meeting of the K9 Users Club on February 6-9, 2023 in Narvik (Norway). The Club was formed in April 2022 in Changwon to exchange experience, knowledge and know-how on operation, maintenance and training of personnel of the Armed Forces of seven countries: the Republic Korea, Norway, Estonia, Finland, Poland, India and Turkey. Canada joined the meeting as an observer.
In general, at the moment, more than 2,000 K9 Thunder howitzers have been adopted by the Armed Forces of 9 countries of the world (including South Korea).
The K9 "Thunder" is a South Korean 155–mm tracked self-propelled howitzer with a 52-caliber barrel, which, depending on the type of ammunition, ensures the defeat of targets at ranges over 40 km, the rate of fire is 6-8 rounds/min, the ammunition carried is 48 rounds. The weight of the howitzer is 47 tons . Auxiliary armament – 12.7 mm machine gun. The calculation is 4-5 people. The MTU MT881 Ka-500 V8 diesel engine with a capacity of 1000 hp and an automatic transmission provide speeds of up to 67 km/h, a fuel reserve of 480 km. ACS for 15 seconds. It can fire 3 shots, which will ensure that the target is hit by three shells at the same time (MRSI firing mode).
The K9 armor provides protection from shell fragments and small arms fire. A 1000 hp diesel engine and an automatic transmission provide high speed and mobility on any terrain.
A number of improvements have been made to the K9A1 version. The main emphasis was placed on increasing the efficiency and firing range up to 54 km, improving situational awareness and improving the comfort of the crew.
The K10 armored transport-loading vehicle is the world's first automated ammunition replenishment vehicle, which is used in conjunction with the K9. The vehicle carries a total of 104 projectiles and has the same driving characteristics as the K9.
K9A2 is the latest version of the howitzer currently under development, which, as a result of using an automated loading system, will have an increased rate of fire (from 6-8 rounds / min. to 9-10 rounds / min.), reduced from 5 to 3 people calculation. The K9A2 howitzer will also be equipped with an electric turret drive (instead of an electrohydraulic drive), an automatic fire extinguishing system, a remotely controlled armament module, air conditioning, composite (rubber) tracks, enhanced ballistic and mine protection.
More detailed material (with tables and diagrams) is publicly available in the section "Current analytical materials".