South Korea's Defense Exports Anticipated to Recover This Year
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Synopsis
South Korea's arms exports are projected to recover this year, targeting over $20 billion after two years of decline. The Defense Acquisition Program Administration aims for $23 billion in sales, boosted by key international agreements.
Key Takeaways
- South Korea anticipates a rebound in arms exports.
- The target for this year is set at over $20 billion.
- Last year's arms exports amounted to $9.5 billion.
- Key deals with Poland and Saudi Arabia are expected to boost sales.
- The country aims for a 5 percent share of the global arms market by 2027.
Seoul, Jan 25 (NationPress) South Korea's arms sector is projected to witness a recovery in exports this year after experiencing a decline for the second year in a row, with officials announcing an annual goal of at least $20 billion on Saturday.
In the previous year, the nation recorded $9.5 billion in arms exports, a drop from $13.5 billion the year before. The peak for South Korea's arms exports was in 2022, reaching $17.3 billion, as per reports from Yonhap news agency.
The Defense Acquisition Program Administration (DAPA) had set an initial target of $20 billion for arms exports in 2024, but did not achieve this goal.
Officials within the agency expressed optimism about exceeding $23 billion in arms exports this year, bolstered by deals including one with Poland and a $1 billion agreement with Saudi Arabia.
South Korea's ambition is to secure a 5 percent share of the global arms export market by 2027, aiming to become the world’s fourth largest defense exporter.
Additionally, preparations are underway for potential universal tariffs on South Korean goods from Washington following the inauguration of the second Donald Trump administration, according to a senior trade official.
"President Trump has been discussing this topic, so it is essential for us to remain alert and prepare thoroughly," the official said to reporters, requesting anonymity.
This statement follows Trump’s proposals to introduce blanket tariffs ranging from 10 to 20 percent on all imports. Upon taking office, the new U.S. president also pledged to impose a 25 percent tariff on imports from Canada and Mexico as early as the beginning of February.
The official noted that as the new U.S. administration aims for balanced trade with its partners, South Korea is exploring avenues to enhance imports from the U.S. rather than focusing on decreasing exports.
"Our goal should be to increase the total trade volume, not lessen it," the official emphasized. "We need to discover ways to achieve mutual benefits."
