Inside South Korea's race to become one of the world’s biggest arms dealers
WORLD 31 May 2023 - 04:03
South Korea is using a $13.7 billion arms deal with Poland - Seoul's biggest ever - to lay the groundwork for a military-industrial juggernaut that the two nations' defence companies hope will feed Europe's hunger for weapons far into the future.
South Korea's arms sales jumped to more than $17 billion in 2022 from $7.25 billion the year before, according to its defence ministry, as Western countries scrambled to arm Ukraine and tensions rose in other hot spots such as North Korea and the South China Sea, according to Reuters' analysis.
The arms deal with Poland, a key NATO member, last year included hundreds of Chunmoo rocket launchers, K2 tanks, K9 self-propelled howitzers, and FA-50 fighter aircraft. The deal's value and the number of weapons involved made it stand out even among the world's biggest defence players.
South Korean and Polish officials say their partnership will help them conquer the European arms market even beyond the Ukraine war, with Seoul providing high-quality weapons faster than other countries and Poland offering manufacturing capacity and a sales pipeline into Europe.
Reuters spoke to 13 company executives and government officials, including those directly involved in the deal, who said the arrangement provides a blueprint for using international public-private partnerships and consortiums to extend Seoul's reach and achieve its ambition to be one of the world's biggest weapons suppliers.
"The Czech Republic, Romania, Slovakia, Finland, Estonia, Latvia, Lithuania, and others were thinking of buying defence products only in Europe, but now it is more well known that you can buy at a low price and have it delivered quickly from Korean companies," said Oh Kyeahwan, a director at Hanwha Aerospace who was involved in the Poland deal.
South Korean companies do not disclose the unit prices for their weapons, which are often sold with support vehicles and spare parts.
The deal established consortiums of South Korean and Polish companies that will build the weapons, maintain the fighter jets and provide the framework to eventually supply other European states, said Lukasz Komorek, director of the Export Projects Office at the state-owned Polish Armaments Group (PGZ).
That will include building South Korean arms on license in Poland, officials in Seoul and Warsaw said. Plans call for 500 of 820 tanks and 300 of 672 howitzers to be built in Polish factories starting in 2026.
South Korea’s offer to provide weapons faster than almost anyone was a key consideration, Polish officials say. The first shipment of 10 K2s and 24 K9s arrived in Poland in December, just months after the deals were signed, and at least five more tanks and 12 additional howitzers have been delivered since.
By contrast, Germany, another major arms manufacturer, has yet to deliver any of the 44 new Leopard tanks Hungary ordered in 2018, said Oskar Pietrewicz, senior analyst at the Polish Institute of International Affairs.
"Countries' interest in South Korea's offer may only grow considering the limited production capacity of Germany's defence industry, which is a major arms supplier in the region," he said.
Executives in South Korea's arms industry say that will be a selling point for future clients.
Constant tensions with North Korea mean the South's military production lines are running and its weapons have been developed, tested, and upgraded in high-pressure situations, said Cho Woorae, global business and strategy vice president at Korea Aerospace Industries.
South Korea had promoted its weapons to Poland before the war, but the invasion of Ukraine - which Russia calls a "special operation" - increased Poland's interest, said Kim Hyoung Cheol, deputy director at the Defense Acquisition Program Administration (DAPA).
After the Polish defence minister's visit in May 2022 to observe South Korean weapons, and Yoon Suk Yeol met with Polish President Andrzej Duda on the sidelines of the NATO summit in June that year, the stage was set for the huge deal that was finalised a month later, Kim said.
South Korea's weapons are designed to be compatible with U.S. and NATO systems - another selling point. The country is the third-largest supplier of weapons to NATO and its member states, accounting for 4.9% of arms purchases, according to the Stockholm International Peace Research Institute (SIPRI).
That is far behind the United States, which accounts for 65%, and France at 8.6%.
JOINT PRODUCTION
Officials in Seoul told Reuters that they pitched Poland on producing South Korean weapons there to make it easier to deliver to European customers.
"The Korean government is promoting military diplomacy and defence cooperation so that the relationship with the purchasing country can develop into various partnerships beyond just a seller-buyer relationship," South Korea's Defense Ministry said in a statement.
Poland's Ministry of National Defence did not respond to a written request for comment.
Oh said Hanwha Aerospace operates successful technology-sharing arrangements in India, Egypt, and Turkey.
"Because of that, I don't think there's much to worry about regarding capacity," he said.
South Korea is developing its KFX fighter jet with Indonesia, and Polish leaders have signalled interest in that project. Malaysia this year bought nearly $1 billion in FA-50s, and Seoul is in the running to win a $12 billion deal to supply Australia's next infantry fighting vehicle.
"Asian countries see us as a very attractive partner for defence deals as we all seek to hedge against the rising tensions," a diplomat in Seoul said. "We're a U.S. ally, but not the U.S."
Caliber.Az
1
|
Iran re-evaluating its ties with Azerbaijan, Armenia Baku - more important, honest partner than Yerevan
25 April 2024 - 12:00
|
2
|
Armenia returns four villages to Azerbaijan, paving the way for peace in the South Caucasus Landmark accord
23 April 2024 - 09:14
|
3
|
Mark Rutte seeks Türkiye's backing for new job A new pair of hands
24 April 2024 - 16:55
|
4
|
"Peoples of South Caucasus should resolve their differences independently" Foreign analysts on Caliber.Az
24 April 2024 - 17:40
|
5
|
Armenian PM's Moscow visit sparks speculation on bilateral relations Dilemma between East, West
23 April 2024 - 11:19
|
Any light at end of tunnel for China’s Hong Kong?
26 April 2024 - 03:05
US dealing with rare bifurcation of economy
26 April 2024 - 01:03
One international destination everyone wants to go to this summer
25 April 2024 - 23:00
Azerbaijani leader's plane makes its maiden voyage from Fuzuli to Berlin
25 April 2024 - 20:59
Azerbaijan, Kazakhstan forge closer ties during high-level meetings
PHOTO/VIDEO25 April 2024 - 20:53
Russia’s Putin to visit China
25 April 2024 - 20:45
Azerbaijani tourism agency granted membership in Global Sustainable Tourism Council
25 April 2024 - 20:37
Azerbaijani parliament condemns EP's biased resolution on human rights
25 April 2024 - 20:25
Putin calls on large businesses to traditionally take part in SPIEF 2024
25 April 2024 - 20:19
Iranian defense minister heads to Astana for SCO defense ministers' meeting
25 April 2024 - 19:59
Türkiye neutralises over 800 terrorists since early 2024
VIDEO25 April 2024 - 19:43
European Parliament urges member states not to consider Russian elections legitimate
25 April 2024 - 19:24
How Iran covers up damage from Israel’s strikes?
PHOTO25 April 2024 - 19:05
Palestinians retrieve 392 bodies from 3 mass graves in Gaza’s Khan Younis
25 April 2024 - 18:46
Iran to launch missiles anywhere in Israel if necessary, general warns
25 April 2024 - 18:27
Twenty border markers installed between Azerbaijan & Armenia
Delimitation progress25 April 2024 - 18:18
Dozens detained at protests in Armenia
25 April 2024 - 18:08
Azerbaijan, Uzbekistan expanding cooperation in space industry
25 April 2024 - 17:49
Controversial Nobel Peace Prize nominee Vardanyan faces int’l scrutiny & opposition
A closer look at actions contrary to peace & humanitarian efforts25 April 2024 - 17:31
Iran builds up military power by showing off advanced Bavar-373 air defence system
PHOTO25 April 2024 - 17:15
Presidents of Azerbaijan, Kyrgyzstan visit Fuzuli, Aghdam cities
PHOTO25 April 2024 - 17:05
Lukashenko blames opposition and NATO: They want to take a district in Brest region by force
25 April 2024 - 17:00
Top Israeli, Egyptian officials secretly meet to discuss possible Rafah invasion
25 April 2024 - 16:41
Energy leading to peace
Proceeding from Azerbaijani President’s speech in ADA25 April 2024 - 16:22
“It would be a big mistake if Armenia used the support gained from the EU against Azerbaijan”
Amashov’s impromptu interview with Ambassador Sharp25 April 2024 - 16:16
Armenian Parliament speaker says legitimate border crucial for peace with Azerbaijan
25 April 2024 - 16:07
New mass grave discovered in Khojaly
Investigation underway / PHOTO25 April 2024 - 15:51
Port of Baku: the Eurasian trade hub working to expand and accelerate growth
Article by Euronews / VIDEO25 April 2024 - 15:39
Hybrid warfare being waged against Armenia, official says
25 April 2024 - 15:24
Azerbaijani police discover cache of weapons in Khankendi, linked to Armenian forces
25 April 2024 - 14:58
Zakharova slams Armenian media for distorting Russian leadership’s statements on Baku-Yerevan ties
25 April 2024 - 14:44
Baku, Budapest cement economic ties, sign protocol
25 April 2024 - 14:27
Yerevan ready to discuss gas purchase with Baku – Armenian Speaker
UPDATED25 April 2024 - 14:15
Azerbaijan set to take bold steps vis-à-vis climate change - minister
25 April 2024 - 14:09
Official: Hamas would lay down its weapons if two-state solution implemented
25 April 2024 - 13:54
Türkiye captures nearly 3,000 Islamic State suspects in 10 months
VIDEO25 April 2024 - 13:40
Blinken tours China to promote some ties
25 April 2024 - 13:26
Azerbaijani presidential aide showcases Fuzuli's rebirth in stirring social media video
25 April 2024 - 13:15
Media: China harbours ship tied to North Korea-Russia arms transfers
25 April 2024 - 13:11
Western Azerbaijan Community condemns US human rights report as discriminatory
25 April 2024 - 12:58