SEOUL - South Korea is using a $13.7 billion arms deal with Poland - Seoul's biggest ever - to lay the groundwork for a military-industrial juggernaut that the two nations' defense companies hope will feed Europe's hunger for weapons far into the future.
South Korea's arms sales jumped to more than $17 billion in 2022 from $7.25 billion the year before, according to its defence ministry, as Western countries scrambled to arm Ukraine and tensions rose in other hot spots such as North Korea and the South China Sea.
South Korea's largest-ever arms deal with Poland, a significant NATO member, featured a wide range of advanced weaponry such as Chunmoo rocket launchers, K2 tanks, K9 self-propelled howitzers, and FA-50 fighter aircraft. This exceptional deal, in terms of both its value and the quantity of weapons, stood out even among major global defense players.
The partnership between South Korea and Poland aims to establish dominance in the European arms market, extending beyond the context of the Ukraine conflict. South Korea's strength lies in providing high-quality weapons with greater efficiency compared to other countries, while Poland offers manufacturing capabilities and a sales pipeline into Europe.
According to 13 company executives and government officials involved in the deal, the collaboration serves as a blueprint for South Korea to expand its global influence and fulfill its ambition of becoming one of the world's top weapons suppliers. The arrangement showcases the effective utilization of international public-private partnerships and consortiums to enhance Seoul's reach in the defense industry.
The arms deal between South Korea and Poland has sparked interest from other European countries in purchasing defense products from Korean companies. The deal, which included various advanced weapons, has demonstrated that Korean companies can offer competitive prices and fast delivery.
Hanwha Aerospace, already a major player in the global howitzer market, is expected to further increase its market share through this deal. Consortiums of South Korean and Polish companies have been formed to manufacture the weapons, maintain fighter jets, and potentially supply other European states. The agreement sets a blueprint for utilizing international partnerships and consortiums to expand South Korea's reach in the global defense industry.
South Korea and Poland plan to build South Korean arms on license in Polish factories as part of their arms deal. The agreement includes the production of tanks and howitzers, with a significant portion to be manufactured in Poland starting from 2026. Both countries aim to go beyond subcontracting roles and become dominant players in the European defense market.
However, analysts caution that long-term plans may face challenges due to shifting political dynamics and fluctuating demand for weapons. Other European countries might also seek similar co-production agreements with South Korea, which could create competition and impact the joint operation.
Hanwha Aerospace in South Korea is utilizing automated robots and over 150 production workers to manufacture K9 self-propelled guns for Poland. These guns, which weigh 47 tons, feature NATO-standard 155mm ammunition, computerized fire-control systems, and seamless integration into command and control networks. South Korea's ability to deliver weapons quickly was a crucial factor in Poland's decision to engage in the arms deal.
South Korea's military-industrial partnership allows for efficient domestic production and capacity expansion, which impresses potential clients. The ongoing tensions with North Korea have driven South Korea's military production and facilitated the development and testing of weapons in high-pressure situations.
South Korean weapons are designed to be compatible with U.S. and NATO systems, making them an attractive option for countries seeking alignment with these alliances. South Korea is the third-largest supplier of weapons to NATO and its member states, trailing behind the United States and France.
South Korean officials aimed to establish production facilities in Poland to facilitate easier delivery of South Korean weapons to European customers. The Korean government seeks to foster partnerships beyond simple buyer-seller relationships through military diplomacy and defense cooperation.
Hanwha Aerospace, for instance, has successful technology-sharing arrangements in countries like India, Egypt, and Turkey. Officials express confidence in the capacity to meet demand and assure that consortiums formed between South Korean companies and Polish defense firms, such as PGZ, will effectively represent the entire project. The arms deal, initiated with a framework agreement, covers multiple projects and involves a unified consortium overseeing the industry's perspective.
South Korea has made remarkable strides in its defense and space industries, surprising the international community with its achievements. The country's recent accomplishments include the successful launch of a home-grown space rocket, the maiden flight of its domestically designed KFX fighter, and securing substantial defense deals. South Korea's growing capabilities have prompted other nations to take notice and recognize its potential as a defense partner.
South Korea has also shown a willingness to support Ukraine beyond humanitarian aid, including the approval of South Korean weapons components for use in Ukraine. In addition, South Korea has been successful in expanding its defense exports in Asia, driven by regional security concerns and the rivalry between the United States and China.
Countries such as Indonesia, Poland, Malaysia, and Australia have expressed interest in collaborating with South Korea on defense projects and procuring its advanced equipment. South Korea's status as a U.S. ally, combined with its unique capabilities, makes it an attractive partner for defense deals in the region.