"The $3 Trillion Era of the Global Defense Market is Coming"…KOTRA Holds Defense Seminar

Participation of the Ministry of National Defense, Ministry of Trade, Industry and Energy, and Defense Acquisition Program Administration

As the new U.S. administration is about to take office, there are forecasts that the global defense market will undergo a period of great transformation. On the 10th, the KOTRA Defense Materials Trade Support Center held a seminar on the outlook of the global defense market in collaboration with the Ministry of National Defense, Ministry of Trade, Industry and Energy, and Defense Acquisition Program Administration to discuss South Korea's defense export strategy.

Jang Won-jun, a defense expert and research fellow at the Korea Institute for Industrial Economics & Trade, gave a presentation titled "Global Defense Outlook and Response Strategies in the Trump 2.0 Era" at the seminar. He stated, "Due to increased defense spending by major countries and the possibility of geopolitical conflicts, the global defense budget could rise to $3 trillion (approximately 4,280 trillion KRW) and the weapons acquisition budget to $1 trillion (approximately 1,430 trillion KRW) within a few years." This represents a 43% increase compared to last year's weapons acquisition budget of $699 billion (approximately 998 trillion KRW). Research fellow Jang added, "There will be significant opportunities for value chain cooperation with the U.S. in shipbuilding, ship maintenance, repair, and overhaul (MRO), among others."

At the Global Defense Market Outlook Seminar held on the 10th at KOTRA Invest Korea Plaza (IKP) in Seocho-gu, Seoul, from left: Colonel Park Da-hyun, Defense Industry Export Planning Division, Ministry of National Defense; Jang Won-jun, Research Fellow, Korea Institute for Industrial Economics and Trade; Shim Cheon-su, Manager, Defense Industry Export Planning Division, Ministry of National Defense; Lee Jae-sik, Head of Defense Material Trade Support Center, KOTRA; Kim Kyung-sook, Senior Researcher, Korea Institute for Defense Analyses; Yoo Hyung-gon, Head of Policy Research Center, Korean Defense Technology Association; Yang Seung-yoon, Senior Researcher, Eugene Investment & Securities; Min Seung-gi, Officer, Advanced Civil-Military Cooperation Support Division, Ministry of Trade, Industry and Energy, are posing for a commemorative photo. Photo by KOTRA

Kim Kyung-sook, senior researcher at the Institute for National Security Strategy, cautioned, "The strengthening of nationalism could intensify competition, which may act as a risk factor," urging a cautious approach.

Yang Seung-yoon, research fellow at Eugene Investment & Securities, emphasized, "It is necessary to focus on strategic regions and strengthen local production and joint development efforts to respond to protectionism." Research fellow Jang also stated, "We need to expand defense supply chain cooperation in shipbuilding, drones, missiles, etc., through activation of the U.S.-Korea Defense Supply Chain Agreement (SoSa) and joint development."

Yoo Hyung-gon, director of the Korea Defense Technology Society, said, "We should shift from domestic production of defense products to fostering domestic technology, securing core technologies, and accelerating global expansion." Senior researcher Kim added, "Efforts must also be made to protect and prevent leakage of core defense technologies in the Baengnyeong-ri area."

Defense industry experts attending the Global Defense Market Outlook Seminar on the 10th are participating in a panel discussion. Photo by KOTRA

Following the expert presentations, a panel discussion was held with representatives from the Ministry of National Defense, Ministry of Trade, Industry and Energy, Defense Acquisition Program Administration, KOTRA, and defense experts to discuss strategies for expanding global defense exports and collaboration methods.

Lee Jae-sik, head of the KOTRA Defense Materials Trade Support Center, stated, "Thorough preparation is necessary to turn the anticipated changes in the global defense market ahead of the new U.S. administration into opportunities for our defense exports."

Lee added, "The KOTRA Defense Center will actively identify and promote promising countries and government-to-government (G2G) projects in response to changes in the international situation. We will support overseas marketing of our defense companies through global leading defense trade offices, Team Korea delegations, domestic and international exhibitions, and strive to become one of the world's top four defense export powers."