Defense Industry Potential
Technology Development Pivotal to Arms Manufacturing
South Korea’s defense industry is emerging as a new growth engine for exports, boosted by its long-term investment in research and development. The U.S. weekly Defense News recently reported that Korea, a traditional weapons importer, has turned into a ``global power,’’ ascending from a subcontractor putting together parts for major global arms manufacturers.
Defense News placed two Korean arms makers on the list of world’s top 100 defense contractors. The two are Korea Aerospace Industries (KAI) and Rotem. KAI specializes in making military aircraft and helicopters. It assembled KF-16 fighter jets under contract with Lockheed Martin of the U.S. for a Korean fighter project (KFP). The firm has become the world’s 12th developer of a supersonic trainer jet called the T-50 Golden Eagle. Rotem, a railcar maker, rolls out armored vehicles, including battle tanks.
In fact, weapons exports are still in their nascent stage although local companies are aggressively marketing their products abroad. According to the Defense Acquisition Program Administration (DAPA), Korea exported $255 million worth of defense goods, down from $262 million in 2005 and $417 million in 2004. However the sum is expected to rebound to $340 million this year. Two Korean arms makers struck major contracts with Turkey last month.
Under the deal, KAI will export more than 30 KT-1 Woongbi basic trainer aircraft to Turkey. And South Korea will provide Turkey with the necessary technology for the design, development and building of Ankara’s new-generation of main battle tanks. The tank development program will adopt the XK2 Black Panther tanks, co-developed by the Agency for Defense Development (ADD), Rotem and other Korean companies. The two arm deals are estimated to exceed $1 billion.
Experts said the T-50 supersonic trainer jet could become one of the nation’s key weapons export items. The jet is now competing with Italy’s Aermacchi M-346 and British BAE System’s Hawk 128 for a trainer acquisition program from the United Arab Emirates (UAE). The program is worth $1.4 billion. Korean weapons manufacturers are trying to pass through the $1-billion mark for exports after they began shipping rifles and ammunition in the 1970s. They have made great strides not only in localizing arms supplies but also in exploring overseas markets.
The nation’s defense industry is now drawing attention from the international community. This reflects the fact that local weapons producers have made strenuous efforts to develop technologies over the last three decades. The country can join the ranks of major global defense industry powers by taking advantage of its core industries _ information and communication technology, shipbuilding, aircraft and machinery _ to make state-of-the-art military jets, tanks, ships, missiles and other weapons.
Arms suppliers need to step up cooperation with the government and research institutes to boost international competitiveness. We hope they will make further contributions to national defense as well as economic prosperity for the country.