Korea’s Defense Industry Poised for Global Growth Amid Worldwide Arms Buildup
South Korea’s defence sector is gaining global market share as countries ramp up military spending, while supply-chain vulnerabilities threaten its momentum.
A wave of global rearmament, fueled by the prolonged Russia-Ukraine war and Middle-East conflict, is reshaping the international security landscape and creating opportunities for South Korean defence firms. At the 2026 KorAsia Forum in Seoul, former DAPA chief Kang Eun-ho highlighted three accelerants: the United States shifting burden to allies, Russia’s push to regain influence, and China’s emergence as a major power.
South Korea’s export value surged from roughly 4.7 trillion won in 2015 to 20.8 trillion won in 2025, earning a 6 percent share of worldwide arms sales and a fourth-place ranking, according to SIPRI. Signature systems such as the K9 howitzer, K2 tank and FA-50 aircraft have bolstered its reputation. Yet supply-chain bottlenecks for critical minerals and components threaten production continuity, prompting calls for detailed supply-chain mapping and diversification.
Cost asymmetries, illustrated by the high price of U.S. interceptors versus cheap drones, also raise sustainability concerns. Finally, the sector must balance growth of prime contractors with the health of SMEs, ensuring that localisation does not marginalise smaller suppliers.
Why it matters
South Korea’s defence boom reshapes global arms markets and highlights supply-chain risks that could affect worldwide security.
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