South Korea’s emergence as a leading global arms exporter
TLDR
Since the Korean War, South Korea has invested billions into its arms industry to provide better weapons and armaments for its military to defend against the ever-present North Korean threats. The arms sector has matured over the past decades, as Seoul emerges to become one of the world’s largest arms exporters with some of the most updated armaments.
According to the Stockholm International Peace Research Institute (SIPRI), South Korea’s share of global arms exports increased from 1% in 2016 to 2.8% in 2021, rising from the 31st to the 7th largest weapons exporter, making it the fastest growing exporter in the world.
Fear of being overrun by its communist North Korean neighbour, South Korea started the domestic arms industry after US President Richard Nixon withdrew troops from the Korean Peninsula in 1969. Seoul has since poured billions into the research and development and manufacturing of armaments to equip the country’s forces with the latest technology and weaponry, turning the country into one of the largest arms exporters in the world as sales hit a record-high US$17 billion in 2022 amid the Ukrainian War.
South Korea’s weapons have become increasingly popular as the country’s industry can provide a reliable supply compared to its American and European counterparts. Poland has turned to South Korea amid efforts to modernise troops and refill its weapons stockpiles by purchasing around 1,600 K2 and K9 tanks on top of the K239 Chunmoo self-propelled rocket artillery systems. The orders come after America’s Lockheed Martin failed to meet Warsaw’s needs for High Mobility Artillery Rocket Systems (HIMAR), one of the most effective weapons used by the Ukrainians to counter Russian attacks. Warsaw has also switched its German tank orders to South Korea’s Hyundai Rotem as the K2 tanks could be produced at five times the pace of the Leopard 2 tanks from Germany’s Krauss-Maffei Wegmann.
South Korea’s semiconductor manufacturing has significantly contributed to the efficiency and resilience of its supply lines, as the country takes up around 20% of the global semiconductor supply. The continuous semiconductor output allows the production lines of the arms industry to become more resilient to the shock in supply chains amid the Covid-19 pandemic and the Ukrainian War.
On top of its efficiency, the South Korean manufacturers also offer cheaper alternatives to the Western producers, as the K2 tanks ordered by Warsaw are only priced at US$5.7 to 7.1 million per tank, around half the price of a German Leopard 2 tank. The lower price tags have made South Korean armament more favourable as they offer an affordable yet quality alternative compared to the more costly American and European models.
South Korea’s rapid development of its weaponry industry could see the country emerge as a potential new arsenal of democracy by providing modernised equipment to NATO and its allies. Seoul’s efficient supply and lower prices could strengthen NATO by allowing its members to replenish the depleted reserves amid the Ukrainian War.
By seeking an alternative arms supplier other than the US, the European nations of NATO could lower their reliance on America in security, granting the continent more bargaining power in the trans-Atlantic partnership. As the South Korean arms industry presents a quality and reliable alternative to American arms, the European NATO states would likely increase their orders from the East Asian industry to lower reliance on Washington. The diversification of suppliers could ease supply shocks and elevate Europe’s position compared to the US in the trans-Atlantic bloc. Cutting dependency on American arms and gradually building its own arsenal could grant Europe strong bargaining power in diplomatic and strategic planning, especially since the EU, led by French President Emmanuel Macron, has been planning to create its own army within the economic union in recent months.
Moreover, the South Korean arms contracts have fewer restrictions than the US on arms production after purchases, as the recipient nations are allowed to purchase the licences and produce with their own workforce instead of solely relying on the South Korean industries. The flexibility in production could create new jobs in the recipient countries, namely Poland and Egypt, two of the largest consumers of South Korean weapons at the moment, further incentivising potential buyers to move to Seoul from the restrictive licence imposed by Washington. The additional jobs created by armament manufacturing could ease unemployment in the receiver nation, especially over the current cost of living crisis that is expected to linger for the coming quarters.
The localisation of weaponry production and transfer of technologies to the buyers could also facilitate the development of the arms industry in the recipient countries, hence, improving global collective security. Cheaper licences and decentralised production could bolster the research and development and production of advanced weaponry. This could allow the nations, especially the NATO member states with outdated arms due to low military expenditure in the past decades and had their stockpiles depleted after sending weapons to aid the Ukrainian effort, to rearm and replenish their reserves, as shown by Poland. By purchasing South Korean arms, the nations can fill up their inventories at a more modest price, allowing NATO to be in a better position to deter future wars of aggression around the globe (i.e. possible Chinese invasion of Taiwan) and to promote global security as a whole.
Seoul’s 177% in arms export in the past five years indicates that the East Asian country is expected to develop its weapon industry further and provide more efficient and capable armaments to the world in the coming years. As the Ukrainian War drags on with more weapons provided by NATO members, nations from the bloc, especially the US and Poland, are expected to order more equipment from South Korea to reinforce their own forces and replenish the depleting reserves. Efficient supply lines and lower prices incentivise mass NATO orders, as the quality of the South Korean equipment is arguably on par with the traditional American arsenal. Stronger military cooperation between South Korea and NATO, such as military exercises and armament deals, is expected as the member states are ramping up military expenditure within the decade to modernise their troops.
