COVER STORY K-defense expands global footprint amid shifting security order

By Kim Bo-kyoung

• Published Oct 8, 2026 12:34 PM KST

Global rearmament wave gives Korean defense industry both chances, challenges

The global security order is undergoing one of its most profound transformations since the end of the Cold War, as the prolonged Russia-Ukraine war and Middle East conflict push countries around the world to strengthen their own military capabilities and secure their defense supply chains.

These ongoing conflicts, which experts describe as an era of global rearmament, are offering chances for Korea's defense industry to expand as a global player, while the industry grapples with challenges such as supply chain disruptions.

Experts and industry figures see three major factors accelerating the global rearmament trend, according to Kang Eun-ho, former head of the Defense Acquisition Program Administration (DAPA).

The first factor is a shift in the United States' approach to international security. The U.S., which has led the postwar international security architecture, is increasingly putting its "America First" policy while calling on its allies to assume a greater share of the burden for their own defense structure. The second factor is growing geopolitical competition stemming from Russia's efforts to restore its sphere of influence and China's rise as a major power. The third is a growing recognition among countries of their need to independently build up their defense capabilities as international conflicts become increasingly prolonged.

"When a crisis strikes, countries need military capabilities that can respond immediately, as well as maintenance capabilities and production capacity," Kang said during the 2026 KorAsia Forum, hosted by The Korea Times with its sister publication Hankook Ilbo, in Seoul, Wednesday.

"They also need the ability to hold out until outside assistance arrives, and this has made it increasingly difficult for countries to neglect their own defense capabilities."

The focus of rearmament vary across regions. Europe has moved to expand air defense, ammunition stocks and ground forces following Russia's invasion of Ukraine, while promoting joint procurement and expanding defense production. In the Middle East, countries are investing heavily in air defense systems and capabilities to counter drones. Meanwhile in East and Southeast Asia, China and Japan are strengthening maritime and missile capabilities, while countries such as the Philippines and Singapore are investing in advanced maritime defense systems.

While priorities differ from region to region, the common trend is clear: Countries are rearming and seeking to expand their domestic defense industrial bases.

K-defense emerges as global player

The global rearmament drive has ironically created new opportunities for Korea's defense industry. Once a country that depended heavily on U.S.-supplied weapons, including M1 rifles and carbines after the 1950-53 Korean War, it has now emerged as a major producer and exporter of high-performance defense systems.

Korea's defense exports rose from around 4.7 trillion won ($3.5 billion) in 2015 to 20.8 trillion ($15.4 billion) in 2025, more than quadrupling over the decade. It accounts for 6 percent of global arms exports last year, ranking fourth worldwide, according to the Stockholm International Peace Research Institute.

"K-defense has been recognized on the global stage, from the K9 self-propelled howitzer, Cheongung guided missile system, K2 battle tank and FA-50 light attack aircraft to naval defense systems," main opposition Peolple Power Party floor leader Rep. Jeong Jeom-sig said at the forum. "The industry's success is based on Korea's indigenous technological capabilities, strict adherence to delivery schedules and, above all, the strong trust it has built with customer countries."

Need to address challenges to go forward

For K-defense to sustain its achievements, it is essential to address the challenges ahead.

One of the industry's biggest hurdles is the potential impact of supply disruptions of critical materials on production, maintenance and delivery commitments. The government and defense companies need to examine the origins of critical minerals, specialty materials, as well as the structure of their suppliers, experts said.

"A bottleneck at any point in the supply chain can disrupt the entire production process," Kang said. "Even when there appears to be no problem at the level of a completed weapons system, production can be brought to a halt by a shortage of a particular material or component."

He suggested creating supply chain maps for each weapons system, putting efforts to localize key components and diversifying suppliers. Such measures, Kang said, would help identify bottlenecks and establish priorities for supply chain security.

Another challenge is seeking a balance between high-end weapons systems and low-cost ones. As seen in the conflict in the Middle East, modern warfare created extreme cost asymmetries, with relatively cheap offensive weapons exhausting far more expensive defense platforms.

Yoo Jeh-seung, a senior executive adviser at LIG D&A, said the cost of a U.S. PAC-3 interceptor is estimated at around $4 million per round, compared with roughly $20,000 to $50,000 for an Iranian Shahed-136 drone.

"That represents a cost gap of roughly 80 to 200 times," Yoo said. "If attackers can launch large numbers of inexpensive drones while defenders have to expend costly interceptors, no country can sustain that kind of exchange for long."

Another priority is strengthening the broader defense industrial ecosystem.

K-defense has so far centered on major prime contractors, backed by a network of defense suppliers. But as countries increasingly begin to adopt national policies to promote their domestic defense industries, they are pursuing more localization.

"The more localization expands, the greater the risk that domestic defense suppliers, particularly small and medium-sized enterprises (SMEs) that make up much of the supplier base, will see their order volumes decline," said Kim Dong-beom, a research fellow at the Korea Institute for Defense Analyses.

The DAPA is currently operating the Global Value Chain 30 program, which seeks to help Korean SMEs enter global defense supply chains, primarily through defense offset arrangements tied to imports.

Kim, however, says Korea should further explore ways to create a virtuous cycle of reciprocal procurement when Korean defense companies export overseas. "Such measures would help ensure that domestic defense SMEs and suppliers can grow alongside major prime contractors, rather than seeing their role diminish as exports become increasingly localized," Kim added.