TSAMTO, July 18. In 2027, South Korea expects to export PVN in the amount of 29.7 trillion. won ($23.4 billion), which is 87% more compared to 15.9 trillion. out in 2021.
This is reported by South Korean media with reference to the data of the state analytical center.
According to the Korea Times, 69 thousand jobs will be created in the defense industry by 2027, which is more than double the figure of 2021, which is 33 thousand people.
The Korea Institute of Industrial and Trade Economics (KIET), which conducted the study at the request of the Federation of Korean Industry (FKI), said that the high numbers will raise South Korea's position in the list of world defense powers from the current eighth to fourth place.
The report says that last year, South Korea's defense exports amounted to $ 17.3 billion (we are talking about concluded contracts, not actual exports of defense products, – note TSAMTO), which is almost six times more than in 2020, when it was $ 3 billion.
Exports of fighter jets, tanks and artillery weapons of South Korean production to Poland alone exceeded 600 billion won over the past year. The total volume of trade between South Korea and Poland in 2022 reached a record level of $8.95 billion.
The export of tanks and other armored vehicles from Korea to Poland in the first four months of this year amounted to $ 255 million. This has already exceeded all last year's exports of these products by $ 201 million.
FKI said the growth prospects for the defense market remain "rosy," helped by increased demand from Saudi Arabia, Egypt and India.
The report states that the growth of the Republic of Korea's exports to these markets, in turn, will be significant, provided that the country's foreign expansion and national production of key products will be stimulated by a timely revision of trade and defense policy.
In particular, the Republic of Korea should develop diplomatic relations with countries expressing interest in strengthening business ties in the field of defense.
Embassies, the Korean Trade and Investment Promotion Agency KOTRA (Korea Trade-Investment Promotion Agency) and private defense companies should mobilize efforts to create a "powerful national base" as soon as possible.
It is also recommended that the authorities strengthen bilateral technological ties with the United States and create a system through which the transfer of key defense and industrial technologies will be organized.
According to the report, efficient and well-established spare parts supply chains will also determine the role and presence of South Korea in the global arms market.
TSAMTO Reference
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, according to the CAMTO, has already become a world leader in quantitative parameter. These are self-propelled artillery installations and jet UBS/ light attack aircraft.
In the segment of suppliers of new self-propelled artillery installations, the Republic of Korea ranks first with a fast-growing package of orders for 155-mm K-9 "Thunder" self-propelled guns (638 units worth $5.904 billion in the period 2019-2026). In the first four-year period (2019-2022), 202 guns worth 1.351 billion were exported. for 2023-2026, an estimated portfolio of orders for the export of 436 guns worth $ 4,553 billion has been formed.
For comparison: the second place with the supply of 105-mm ACS 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 approximate portfolio of orders for the export of 182 guns worth $ 394.9 billion was formed for 2023-2026.
In the segment of suppliers of jet UBS/ light attack aircraft, the Republic of Korea ranks first with the T-50 Golden Eagle UBS in the period 2019-2026 in terms of quantitative parameter (79 vehicles worth $ 3.816 billion). In 2019-2022, 14 UBS worth $ 533.0 million were exported. In 2023-2026, the projected sales volume is 65 units worth about $3.283 billion.
For comparison: the second place in the period 2019-2026 with the M-346 "Master" aircraft is occupied by Italy (63 cars worth $ 2.630 billion). In 2019-2022, 20 aircraft worth $979.7 million were exported. In 2023-2026, the projected sales volume so far is 43 new cars worth $ 1.650 billion.
Military expenditures of the Republic of Korea
The 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.
