Daily Report: Geopolitical Conflicts Boost South Korean Arms Exports

Reference News Network reported on August 2 According to the Japan Economic News on July 31, taking advantage of the military conflict between the U.S., Israel, and Iran, South Korea's defense industry is gaining attention from all sides. The air defense missiles manufactured in South Korea, procured by the UAE before the conflict, have achieved a very high interception success rate. By 2025, South Korea has become the world's fourth-largest arms exporter, aiming to meet the weapon demands of European and Gulf countries, establishing its position as a strong defense industrial nation.

Previous South Korean governments have regarded the promotion of defense equipment exports as a national strategy. The current President Lee Jae-myung has set a goal to build a defense industry ranked fourth globally, planning to invest "exceeding expectations" budgets in defense and aerospace research by 2030.

The Stockholm International Peace Research Institute's list of the top 100 global arms sales companies for 2025 (based on 2024 data) shows that four South Korean companies made the list: Hanwha Group, LIG Defense and Aerospace Company, Korea Aerospace Industries, and Hyundai Rotem Company.

In 2022, South Korea signed a contract with the UAE to export the "Cheongung"-2 surface-to-air missile defense system. In 2023 and 2024, this system was subsequently sold to Saudi Arabia and Iraq.

After the outbreak of the military conflict between the U.S., Israel, and Iran, Iran retaliated against U.S. military-related facilities and energy facilities in Gulf countries such as the UAE. According to South Korean media reports, the "Cheongung"-2 system deployed in the UAE intercepted a large number of Iranian missiles during this conflict.

The demand for weapons in European countries has surged following the Russia-Ukraine conflict, which has also boosted South Korea's related industries. In 2022, Poland decided to procure South Korean-made K2 main battle tanks and K9 self-propelled howitzers, with a total value of $44.2 billion. The K9 self-propelled howitzer has also been introduced by other European countries and Australia.

Due to the long-standing tense situation on the Korean Peninsula, South Korea's defense industry has maintained a supply chain for land-based weapons, and its rapid delivery capability is a significant advantage.

South Korean equipment is also competitive in terms of price. The cost of a "Patriot" interceptor missile used by the U.S. and its allies is $4 million, while according to the Financial Times, the cost of a "Cheongung"-2 interceptor missile is about $1.1 million.

Data from the Stockholm International Peace Research Institute shows that from 2021 to 2025, South Korea ranked ninth in market share among major arms export markets, with total exports increasing by 24% compared to the period from 2016 to 2020. If only considering the year 2025, South Korea's market share has risen to fourth. (Translated by Liu Lin)