President touts defense industry as new growth engine

The Korea Times

The Korea Times

National

Tue, October 3, 2023 | 06:40

Defense

President touts defense industry as new growth engine

Posted : 2022-11-24 16:58

Updated : 2022-11-24 18:40

President Yoon Suk-yeol inspects aircrafts and helicopters during his visit to Korea Aerospace Industries (KAI) in Sacheon, South Gyeongsang Province, Thursday. Yonhap

By Nam Hyun-woo

President Yoon Suk-yeol on Thursday lauded defense companies for their recent deals to export Korean-developed weapons, describing the defense industry as the country's new engine for growth.

"The defense industry is now the country's future growth driver and the backbone of other industries of advanced technologies," Yoon said during a meeting with more than 60 defense company CEOs and the Joint Chiefs of Staff representing the Army, Navy and Air Force at the headquarters of Korea Aerospace Industries (KAI), an aerospace and defense company located in Sacheon, South Gyeongsang Province.

"The country should secure its technological competitiveness to develop weapon systems that can be a game-changer in future warfare, and improve defense companies' R&D environment to establish an ecosystem that the country's defense industry can transform into an export-oriented business."

Following Yoon's remarks, Trade, Industry and Energy Minister Lee Chang-yang unveiled South Korea's plan to invest at least 1 trillion won ($753 billion) by 2027 to support public-private technology transfers and other R&D projects. Vice Defense Minister Shin Beom-chul also pledged that the military will take a leading role in providing post-sale services to countries that purchase South Korean weapons.

Yoon's meeting with the defense firms' leaders came after the firms inked arms deals worth $14.5 billion with Poland in July.

Under the deals, Poland will purchase 980 K2 tanks from Hyundai Rotem and 648 K9 howitzers from Hanwha Defense as well as 48 FA-50 light attack aircraft from KAI. Of them, 10 K2 battle tanks and 24 K9 howitzers were shipped to Poland in October.

President Yoon and Saudi Crown Prince Mohammed bin Salman met in Seoul last week, and the latter expressed his interest in South Korean weapon systems. The crown prince had already inspected the K2, the K9 and other weapons during his previous visit to South Korea in June 2019.

The rising interest in South Korean weapons is in line with the global trend of increasing investments in the military in the wake of the protracted war in Ukraine.

"Given the gap between Russia and Ukraine in military power, Russian weapons' faltering performance seems to have affected the war to be protracted," NH Investment & Securities analyst Rhee Jae-kwang said. "This is triggering anticipation that Russia's share in the global weapons market may decline, and this will be a lucrative opportunity for South Korean defense firms."

President Yoon also noted that the "defense industry's exports not only enhance our national security but also contribute to the peace and stability of the global community and stronger solidarity with friendly nations."

He added, "The country will strengthen tailored export support for defense companies by assisting their efforts to upgrade exports of weapon systems and localize their parts. (The) South Korean military will also assist companies by expanding its cooperation with friendly nations and providing training for partner countries."

President Yoon Suk-yeol speaks during a meeting with defense company chiefs at Korea Aerospace Industries (KAI) in Sacheon, South Gyeongsang Province, Thursday. Yonhap

During his visit to KAI, Yoon observed a test flight of the Korean-developed 4.5th-generation KF-21 Boramae fighter jet, and received briefings on the KC-100, the KT-1 and the FA-50 aircraft, as well as the Surion utility helicopter.

In the afternoon, Yoon also paid a visit to Hanwha Aerospace in Changwon, South Gyeongsang Province, to check the company's development plans concerning howitzers, armored vehicles, antiaircraft weapons and unmanned vehicles. Hanwha Aerospace, which merged with Hanwha Defense on Nov. 1, is preparing to export its Chunmoo missile systems to Poland and Redback armored vehicles to Australia.

At Hyundai Rotem, Yoon inspected K2 tanks and K808 armored personnel carriers as well as multipurpose unmanned vehicles.

namhw@koreatimes.co.kr