#arms #manufacturing #superpower #born #shadow #war #Ukraine #pitfalls
Civil War Effects
South Korea fought one of the bloodiest wars of the post-World War II period with communist Pyongyang, after which the parties agreed to a cease-fire in 1953. No real peace treaty was signed either then or since, so North Korea is officially at war with the South to this day. This fact made it inevitable that security and defense issues would be among the most prioritized topics for the current political leadership in the country.
Immediately after the civil war, Seoul still depended on guarantees from the United States, and the economic situation did not allow it to pay much attention to the defense sector. As a result of the financial boom from the 1960s, the country
he could start building his own defense industry, in which two important things played a prominent role: on the one hand, Washington began to move away from the region, and on the other hand, the financial situation became much more stable.
In the beginning, handguns, rifles and light machine guns were manufactured only under an American license, as well as the production of their ammunition in the country. However, they soon realized that this would be very little to equip a modern and effective army.
The real turning point was the reform of 1974, since then huge sums were systematically invested in the construction of defense industrial capacities. In particular, developments in the heavy chemical industry were given a prominent role, which they were able to utilize well in the military industry as well. As a result of the program, by the 1980s, the achievements of the South Korean military industry satisfied the requirements related to weapons in most respects. From then on, the country had the necessary infrastructure for the production of advanced defense systems, with which it initially supplied mainly its own forces.
However, the military industrial capacities built up in the past decades did not justify South Korea becoming one of the world’s most important weapons-producing powers, but the foundations were laid for it.
The new military industrial superpower
It is important to mention that weapons production and weapons delivery capacities are not nearly the same. There are countries – like China, for example – where modern weapons roll off assembly lines in huge quantities, yet they are mostly used by the country’s own forces, and compared to the total quantity, only a small amount of them are exported to other countries.
In 2022, South Korean President Jun Seog-yol stated that it was his express goal to make his country one of the world’s top four arms exporters by 2027, behind the United States, Russia and France.
The statement seemed ambitious, but two years later it no longer seems unrealistic at all. This was greatly helped by the fact that the country was able to conclude huge agreements. The preliminary outlook was not bad at all: according to data from the Stockholm International Peace Research Institute (SIPRI) in the period between 2018 and 2022, among Asian countries, in addition to China, South Korea also made it to the list of the world’s 25 largest arms exporters, in ninth place. What gave us much more confidence was that Seoul increased its sales by 74 percent compared to the previous five-year period. (It is important to note that during the same period, the country was also the world’s seventh largest buyer of arms.)
In the eyes of Seoul, the approach to the military industry has changed significantly in recent decades.
Until the 1980s, this was considered a necessity that could guarantee the country’s security, until now the profit-oriented approach has also become a consideration.
According to the president, South Korea’s arms production creates jobs, contributes to the country’s development, and generates income, while also fulfilling its basic task: providing the necessary security aspects for the country. Moreover, the government works closely with the manufacturing companies to jointly try to obtain the largest possible market for South Korean weapons.
South Korean manufacturers have gained a high prestige for themselves, as they are famous for their good quality and accuracy among international players. The fact that they are able to complete orders on time is a serious advantage, many competitors often slip with production. The fact that their price-value ratio is definitely competitive also greatly contributes to the reputation of the products.
South Korean companies have created a niche where they supply materials that are not necessarily the highest technologically, but the goods are more affordable
– said Euan Graham, senior analyst at the Australian Strategic Policy Institute. In addition, Seoul used the war in Ukraine with good sense. Practically since February 2022, there have been voices talking about the lack of artillery shells in Kiev. In response to the problem, the West is trying to speed up production, but due to conflicts of interest and licensing difficulties, this process is much slower than expected. The EU is therefore trying to procure supplies from external manufacturers, which are then shipped to the war-torn Eastern European country.
This is where South Korea comes into the picture, as an old ally of the Western powers and as a reliable arms manufacturer, it can help its distressed partners.
The process caused some complications, as the Far Eastern country is prohibited by law from transporting weapons into a war zone. Seoul takes this seriously and continues to refrain from such direct shipments to Ukraine. Indirectly, however, they contribute to the arming of Kiev, as they deliver ammunition to places where a given country can replace its own stocks so that they can go to the war-torn country. The move further enhanced the country’s reputation for fulfilling orders quickly, cheaply and reliably. According to Oskar Pietrewicz, senior analyst at the Asia-Pacific Program of the Polish Institute of International Affairs:
South Korea stands out among its competitors in terms of shipping speed. The compatibility of South Korean equipment with NATO standards is also important, since the South Korean arms industry has worked closely with the United States for years.
In addition to emergency purchases, the Russian-Ukrainian war also significantly affected long-term arms deals in South Korea:
- In December 2023, the Hanwha Defense company signed an additional contract worth 2.6 billion dollars for K2 Black Panthers and K9 self-propelled guns with Poland. Previously, the parties had already agreed on 2022, at that time the largest deal ever brought together by a South Korean corporate defense firm, worth a total of $22 billion. As part of this, hundreds of combat vehicles will arrive in the Central European country this decade. The depth of cooperation between the two governments is indicated by the fact that Warsaw is also buying K239 MLRS and tanks from the Far East.
- Korea Aerospace Industries has reached an agreement with the South Korean military $1 billion combat helicopter purchaseabout. In addition, the company will start serial production of KF-21 fighter jets this year, which will also have significant potential in the international arms market in the future.
- LIG Nex1 already announced one in 2024 3.2 billion dollar agreement with Saudi Arabia. According to the contract, medium-range surface-to-air missiles will be supplied to the oil monarchy. The company realized that the Middle East can be a huge market for them, so they cooperate with Hyundai Rotem in exploiting the opportunities in the region.
Not everything is perfect
However, in addition to business opportunities, the primary concern remains the protection of South Korea. In recent years, the country has been under increasing threats, especially North Korea’s developments, which worry the South’s leadership. The neighbor, which is becoming a nuclear power, is testing more and more sophisticated weapons, while constantly taking more and more aggressive steps towards Seoul. Kim Jong-un, the leader of the North’s regime, made sharp statements in January, saying that South Korea is “the number one near enemy” for his country. These are aspects that cannot be ignored in the southern capital at all, and they indicate that the country cannot make the sector exclusively export-oriented in the future either. The country’s geopolitical situation is complicated by the fact that, in addition to North Korea, Seoul also has tense diplomatic relations with Japan and China. The fact that cautious diplomatic probing towards the neighboring island country has started in recent years means some change in this.
However, the plan has its critics. On the one hand, the fact that the country is trying to appear in the world as an arms-producing power causes displeasure among some of the domestic political actors. Many people link this to the Civil War of more than 70 years ago, as they believe that the military industrial program serves war rather than peaceful purposes. According to them, the phrases uttered by the government, “peace through deterrence”, are not realistic. Another fear is that Seoul is investing too much in an industry that is unpredictable and overly dependent on changes in the international environment. A greater danger is that the sudden increase in orders will cause damage to the reputation that has been built up so far. Concerns are that the increased volume will cause delays or compromise quality. If these pitfalls can be avoided in South Korea, then the country has every right to become one of the world’s most important arms supplying powers.
Cover image credit: SeongJoon Cho/Bloomberg via Getty Images
