Value context and insight. lkm@koreatimes.co.kr
Korea expected to increase defense exports 87% by 2027: FKI
K2 tanks manufactured by Hyundai Rotem / Korea Times file
By Lee Kyung-min
By Lee Kyung-min
Korea will be able to generate 29.7 trillion won ($23.4 billion) in defense exports by 2027, up about 87 percent from 15.9 trillion won in 2021, as sustained by robust growth momentum in recent years, according to a state-run think tank, Monday. The industry will create 69,000 jobs by 2027, more than doubling the 33,000 in 2021, it added.
The Korea Institute for Industrial Economics & Trade (KIET), which conducted the study at the request of the Federation of Korean Industries (FKI), said the strong figures will push up Korea's rank on the list of global defense powerhouses to fourth, up from the current eight.
The report said Korea's defense exports came to $17.3 billion last year, almost a six-fold increase from $3 billion in 2020.
Advancing the rapid growth is defense exports to Poland.
Exports of Korea-made fighter jets, tanks and artillery weaponry to Poland over the past year have topped 600 billion won.
Korea's export of tanks and other armored vehicles to Poland stood at $255 million in the first four months of this year. It already exceeded all of last year's exports of $201 million of the said items.
Included are FA-50 light attack fighter jets, K2 battle tanks and K9 self-propelled howitzers. A howitzer is an artillery weapon somewhere between a cannon and a mortar. It can be used with other artillery pieces, such as long-barreled guns, mortars and rocket artillery.
Korea-Poland trade volume reached an all-time high of $8.95 billion in 2022. This year is the 10th anniversary of the bilateral strategic partnership.
The FKI said the growth outlook for the defense market will remain bright, as strengthened by hefty new demand from Saudi Arabia, Egypt and India.
Korea's growth in those markets will in turn be strong, provided that the country's overseas expansion and local manufacturing of key products are propelled by timely revision of trade and defense policies, the report said.
“Korea should foster diplomatic relations with countries expressing interests in fortifying defense business ties,” the report said.
“Embassies, the Korea Trade-Investment Promotion Agency (KOTRA) and private defense firms should mobilize efforts to establish a strong local base as soon as possible.”
Also recommended is fortifying bilateral tech ties with the U.S. to establish a system whereby key defense and industrial technology transfers are arranged.
“Supply chains will determine the role and presence of Korea as well as how effective the country's say is on the global market,” the report said.
“Strategies for quantitative and qualitative growth will be needed for the recent strong export momentum to continue.”