‘K-Defense Industry’ Buzzing with the Visit of Saudi Power Player

Saudi Arabia and Russia Weapons Reviewed but Domestic Weapons Gain Interest Due to Ukraine War
Possibility of Exporting Cheongung II, Biho Complex, and Escort Ships to Saudi Arabia, the Top Weapon Importer

[Asia Economy Yang Nak-gyu, Military Specialist Reporter] Crown Prince Mohammed bin Salman, known as the de facto ruler of Saudi Arabia, visited Korea on the 17th, raising expectations for the export of 'K-Defense Industry'.

According to the defense industry, the Korean weapons that Saudi Arabia is interested in include the ground-to-air interception system Cheongung II (M-SAM2), the combined anti-aircraft weapon system Biho Composite, and new escort ships.

Saudi Arabia has turned its attention to domestic weapons since January last year when imports of American weapons were banned due to its involvement in the Yemen civil war. Saudi Arabia formed a Sunni coalition with the UAE in 2014 and has been participating in the war against the Shiite forces (Houthi rebels) in neighboring Yemen. Recently, it has been under ballistic missile attacks from the Houthi rebels, making interception missiles urgently needed to block these attacks.

Saudi Arabia had been discussing the purchase of the Russian medium-range ground-to-air missile system S-400. However, due to Russia facing export and financial sanctions following its invasion of Ukraine, Saudi Arabia shifted its interest to Cheongung II. LIG Nex1 is responsible for the production of Cheongung II guided missiles and the engagement control center, as well as system integration. Hanwha Systems handles the multifunction radar, which acts as the 'eyes' of Cheongung, Hanwha Defense manages the launchers, and Kia is in charge of the missile carrier vehicles.

There is also significant interest in the high-performance combined anti-aircraft weapon Biho-II, currently being developed by Hanwha Defense. Biho-II is a system with greatly enhanced detection, tracking capabilities, and firepower compared to the Biho Composite. It mounts a 30mm self-propelled anti-aircraft gun (Biho) with portable ground-to-air guided missiles called Shingung attached to both sides of the turret.

The export of a new escort ship project worth up to 3 trillion won is also imminent. Hyundai Heavy Industries, which jointly established the local shipbuilding company IMI with Saudi state-owned energy company Aramco and others in March, is participating in the bidding together, increasing the likelihood of success. IMI is a shipbuilding company established in 2017 as a joint venture between Hyundai Heavy Industries Group, Aramco, and others.

Hyundai Heavy Industries expects to export about 2 to 2.5 billion dollars (approximately 2.5 to 3 trillion won) if it wins the contract to build five 4,000-ton class escort ships. European companies from Spain and France are mentioned as competitors in the bidding, but the local industry views Hyundai Heavy Industries' chances of winning highly.

An industry official said, "Saudi Arabia is a country that imports the most weapons worldwide due to continuous wars," and added, "It is expected that the export amount of K-Defense Industry, which is attracting attention in Saudi Arabia, will exceed 6 billion dollars (about 7.071 trillion won)."