South Korean defense firms expand into Southeast Asia

In Eastern Europe, military aid includes tanks and self-propelled artillery; in Canada, submarines; in Australia, warships; and in the Middle East and Southeast Asia, fighter jets.

South Korea’s defense industry, known as K-defense, is drawing global attention for its ability to export complete land, sea, and air weapon systems tailored to customer specifications. Experts say no other country can produce and deliver such a comprehensive package.

Capitalizing on the ability to offer any weapon a country might want, South Korean defense companies are targeting nations needing to replace aging equipment. Key markets include Eastern Europe, where the ongoing Russia-Ukraine war has driven up arms demand; Southeast Asia, where maritime tensions with China are rising; and the Middle East, where geopolitical crises have recently intensified.

Southeast Asia has emerged as a particularly important market for K-defense. Vietnam recently agreed with the South Korean government to purchase 20 K9 self-propelled howitzers from Hanwha Aerospace through a government-to-government contract. This marks the first sale of South Korean weapons to a former communist country. While the exact price has not been disclosed, the deal is estimated at $260 million, roughly 5 percent of Vietnam’s annual defense budget. The International Institute for Strategic Studies said most of Vietnam’s artillery and other weapons are Soviet-era equipment, and to reduce reliance on Russia, Vietnam is likely to continue purchasing new weapons in the future.

The T-50 trainer and FA-50 fighter jets, manufactured by Korea Aerospace Industries, are also in high demand. Indonesia has purchased these aircraft continuously since 2011, while Thailand, Malaysia, and the Philippines operate more than 50 of the jets combined.

South Korea’s shipbuilding industry is expanding into Southeast Asia and other Asia-Pacific markets, competing for contracts to supply warships and submarines as it seeks to strengthen its presence in the global defense sector.


Won-Joo Lee takeoff@donga.com