South Korea has been a bit busy lately, selling weapons and tanks everywhere | Poland | South Korea

South Korean President Yoon Seok yeol visited Vietnam last week. During the visit, both sides not only agreed to enhance the level of cooperation between the two countries in the fields of diplomacy, economy, and culture, but also transformed into a "national salesman", vigorously promoting South Korean military weapons to Vietnam, promoting cooperation between the two countries in the defense industry, which has become a highly anticipated part of this visit.

Targeting the Vietnamese market

Yin Xiyue conducted a state visit to Vietnam from the 22nd to the 24th. According to a report by Yonhap News Agency, whether this visit can create opportunities for the export of Korean weapons to Vietnam is also of great concern. The report suggests that there is an increasing demand from the Vietnamese side for the replacement of military helicopters, and during the visit of the Vietnamese Defense Minister to South Korea in March this year, they expressed concern about Korean made weapons such as K-9 self-propelled artillery. Therefore, the agreement reached between the two sides in this field is being monitored by the outside world.

This is a footage taken on June 19, 2012, during the media open day of the South Korean US military exercise, of the participating K-9 self-propelled artillery. Xinhua News Agency/Reuters

During this visit, the economic envoy composed of leaders of major South Korean enterprises followed up reached a new high in scale since the establishment of the Yoon Seok yeol government. Follow up with representatives from defense related companies such as Korean Aerospace Industry Corporation. At the "South Korea Vietnam Business Forum" held during this visit, KAI signed a business cooperation agreement with VTX, a Vietnamese enterprise that researches, designs, develops, and manufactures aviation equipment. South Korean public opinion analysis suggests that this agreement is expected to serve as a springboard for South Korean helicopters to enter the Vietnamese market.

On the 23rd, Yin Xiyue held talks with Vietnamese President Wu Wenshang. At a joint press conference held after the talks, he stated that South Korea "will expand its defense industry cooperation with Vietnam based on the strengthened political mutual trust between the two countries.".

According to data from the Stockholm International Peace Research Institute, 81% of the weapons purchased by Vietnam from 2003 to 2022 were imported from Russia. According to the analysis of Nihon Keizai Shimbun, in view of the conflict between Russia and Ukraine, Vietnam intends to promote the diversification of weapons procurement. South Korea believes that Vietnam's demand for weapons will increase in the future, so it is launching a sales offensive.

Rapid progress in military exports

In recent years, South Korea has vigorously promoted the export of military products. According to data from the Stockholm International Peace Research Institute, the market share of South Korea's military exports has risen for four consecutive years since 2017, jumping from 12th place to 8th place in 2021, reaching 2.8%.

Since taking office, Yin Xiyue has been vigorously promoting arms exports. He promised in August last year to strive for South Korea to become the world's fourth largest arms exporter by 2027. At the 2022 Military Export Strategy Conference held in November last year, Yin Xiyue stated that the military industry is a new driving force for future development, and the government will formulate a cross departmental military export support system to guide exports.

The New York Times reported that South Korea's weapons exports surged by 140% last year to a record high of $17.3 billion, with tens of billions of dollars coming from selling tanks, howitzers, fighter jets, and multiple rocket launchers to Poland.

The report states that at the end of the Cold War, the European allies of the United States reduced their military and weapon production capabilities. But South Korea has maintained a strong domestic defense supply chain.

Fengshan Group, headquartered in Seoul, is an important manufacturer of non-ferrous metal products and ammunition in South Korea. According to data released in early May, the export volume of its defense sector increased by 66.9% year-on-year in the first quarter of this year. Fengshan Group's stock price surged 40.6% in the past year. Analysts believe that in addition to being cost-effective, the ammunition exported by Fengshan Group can also be adapted to NATO standard weapons, which is a favorable condition for its external exports.

Intending to expand the NATO market

Since the outbreak of the Russia-Ukraine conflict, the United States and other weapon suppliers have faced the problem of insufficient production of rockets and other weapons. NATO member countries located in Eastern Europe and other regions were eager to re equip their old weapons after transporting them to Ukraine, so they turned their attention to South Korean weapons that have advantages in price and delivery speed.

According to the Nihon Keizai Shimbun, since the outbreak of the Russia-Ukraine conflict, the demand for defense equipment in European countries has increased rapidly, and many Korean military enterprises have smelled this business opportunity. The media reported that South Korea rapidly increased its weapons production at the time of the escalation of the Russia-Ukraine conflict. The South Korean defense contractor signed a tank and howitzer contract with Poland at the end of August last year, and the first batch of weapons arrived in Poland in just over three months.

According to data from the Stockholm International Peace Research Institute, South Korea is already the third largest arms supplier to NATO and its member countries, after the United States and France.

In addition, South Korea recently signed an agreement with NATO to initiate a mutual recognition process for military aircraft airworthiness certificates, which is believed to enhance the competitiveness of South Korea's military aircraft exports.

According to South Korean media reports, representatives from the South Korean Defense Acquisition Program Administration and the NATO Aviation Commission signed relevant agreements at NATO headquarters in Brussels on the 21st local time. Airworthiness is an important measure of an aircraft's suitability for safe flight. The South Korean Defense Acquisition Program Administration said that if the bilateral mutual recognition process is completed, it will mean that NATO recognizes the airworthiness certificate issued by the South Korean government to military aircraft manufactured in South Korea.

The report mentions that South Korea is the first Asian country to seek mutual recognition of military aircraft airworthiness certificates with NATO. Currently, South Korea has mutual recognition agreements with the United States, Spain, France, and Australia.

An official from the South Korean Defense Acquisition Program Administration stated that if mutual recognition of airworthiness certificates is achieved, it will help enhance the competitiveness of South Korean military aircraft exports.