US Weapon Sales Generate $238.4 Billion Annually Amid "Global Instability"

2023 Fiscal Year Overseas Arms Sales Disclosed
16% Increase from Last Year "Impact of Ukraine War"

The amount of weapons sold by the United States in the 2023 fiscal year increased by 16% compared to the previous fiscal year. This is interpreted as a consequence of heightened international security concerns due to the Ukraine war.

According to the "2023 Fiscal Year Arms Transfers and Defense Trade" released by the U.S. Department of State on the 29th (local time), the scale of weapons sold to foreign countries through Foreign Military Sales (FMS) and Direct Commercial Sales (DCS) during the 2023 fiscal year (from October 2022 to September 2023) was recorded at $238.4 billion (318.1448 trillion KRW). This represents an increase of about 16% compared to the 2022 fiscal year ($205.6 billion).

By sales method, DCS, where foreign governments contract directly with U.S. defense contractors, recorded $157.5 billion, a 2.5% increase from the previous year ($153.6 billion). Weapons sales and transfers through the government-mediated FMS method increased by 55.9% from the previous year, reaching $80.9 billion (108 trillion KRW).

By country, Poland spent $12 billion (16 trillion KRW) on purchasing AH-64E Apache helicopters, $10 billion (13 trillion KRW) on High Mobility Artillery Rocket Systems (HIMARS), $4 billion (5.3 trillion KRW) for Integrated Air and Missile Defense (IAMD) battle command systems, and $3.75 billion (5 trillion KRW) on M1A1 Abrams tanks. Germany signed contracts worth $8.5 billion (11 trillion KRW) for CH-47F Chinook helicopters and $3 billion (4 trillion KRW) for AIM-120C-8 AMRAAM air-to-air missiles.

Among FMS sales, contracts to South Korea included $5.62 billion for F-35 fighter jets and related military supplies. Japan signed contracts exceeding $1 billion for purchases including the E-2D Hawkeye early warning aircraft.

Local media outlet Politico analyzed the sharp increase in U.S. arms exports as due to "increased uncertainty in the international situation caused by the Ukraine war and others." Western countries such as those in Europe, observing Russia's invasion of Ukraine, have strengthened their defense capabilities in preparation for the possibility of becoming targets of Russia themselves at any time. Additionally, as their own arsenals have been depleted due to support for Ukraine, orders to replenish them appear to have increased.

On the other hand, Russia, the world's second-largest arms exporter after the United States, is evaluated to have a weakening defense industry. This is due to the need to use weapons produced for the Ukraine war combined with sanctions.