Why this is important to Wisconsin businesses: Wisconsin’s expertise in aerospace could prove to be beneficial.
South Korea is boosting its defense budget, and even as it powers up its own systems, it is becoming a significant force in military exports to other countries.
In September, the government announced a 4.5% increase in defense spending, raising the budget to $45 billion for 2024. About 30% of that will go toward updating equipment as well as research and development. The plan also includes $5.4 billion for South Korea’s “three-axis” project to counter North Korea’s nuclear and missile-strike capabilities, according to Forecast International’s Defense & Security Monitor.
The three-axis project calls for establishing a system that, through heightened surveillance, could preemptively knock out North Korea’s missiles before they are launched; adding missiles to intercept low-flying and short-range missiles from North Korea; and developing ballistic missiles that would target North Korea’s capital if a nuclear strike is detected.
Meanwhile, South Korea is rapidly expanding its arms exports. According to the Stockholm International Peace Research Institute, South Korea is the ninth-largest military supplier to other countries, with a 2.4% share of the global market. South Korea’s arms exports from 2018 through 2022 jumped 74% over the previous five-year period.
There are five major defense companies in South Korea: Korean Aerospace Industries (KAI), Hyundai Rotem, Hanwha Aerospace & Hanwha Defense, and LIG Nex1.
One way to learn more about South Korea’s defense industry is through the Seoul International Aerospace and Defense Exhibition, held in October. This year’s event drew exhibitors from 35 countries. The exhibition is one of Asia’s largest aerospace and defense conferences.
Wisconsin companies with defense technology and equipment may find opportunities as a result of South Korea’s defense boost.
