In the '2030 Rearmament' Roadmap
"Seeking Defense Industry Cooperation with Indo-Pacific Partners"
The European Union (EU) has decided to allow limited loan support for joint arms procurement even when purchasing from third countries. South Korea is, in principle, an eligible country. However, due to several stringent conditions, it is expected that it may not be easy for Korean companies to benefit.
On the 19th (local time), the European Commission, the EU's executive body, announced detailed regulations for the 150 billion euro (approximately 238 trillion won) joint arms procurement loan support named 'SAFE (Security Action For Europe)'.
According to the regulations, 'EU accession applicant countries, candidate countries, and countries that have signed security and defense partnerships with the EU' can participate in joint procurement by EU member states. It specifically states that it is also possible to purchase weapons from defense industry companies based in these countries.
Currently, six countries have bilateral security and defense partnerships with the EU: South Korea, Japan, Norway, Albania, North Macedonia, and Moldova. Ukraine and T?rkiye, which are EU accession candidates, are also granted eligibility to participate.
However, upon examining the detailed regulations, it does not seem easy for Korean defense companies to directly secure contracts. A prerequisite is that the third-country government must directly participate in joint purchases intended for supporting Ukraine or for stockpiling weapons for EU member states.
But since the South Korean government is currently not providing lethal weapons to Ukraine, the possibility of participating in joint purchases for 'Ukraine support' is slim. Also, considering that this plan is designed to promote 'European rearmament,' it is unlikely that the Korean government will express willingness to participate.
Of course, it cannot be completely ruled out that other third countries seeking joint purchases with EU countries might choose Korean-made weapons. However, countries with the same eligibility conditions as South Korea, such as Norway, T?rkiye, and Ukraine, are expected to prefer options that benefit their own defense industries.
When joint purchases are promoted among EU member states without third countries, at least 65% of the components, corresponding to the finished product price, must be supplied within the European Free Trade Association (EFTA) area, which includes non-EU European countries such as Iceland, Liechtenstein, Norway, and Switzerland, or within Ukraine.
The 'SAFE' regulations announced that day are part of the European Commission's mobilization plan for funding totaling 800 billion euros aimed at rearmament by 2030. Aside from loan support, the remaining 650 billion euros represent the sum of individual member states' planned defense budget increases targeted by the Commission. The Commission plans to activate exceptions to fiscal rules so that each country can increase defense spending by 1.5% of GDP without worrying about EU sanctions due to exceeding debt limits.
On the same day, the Commission also released a defense white paper containing sectoral blueprints for rearmament by 2030, along with the funding mobilization plan. Named 'Preparedness 2030,' the white paper highlights the development of the regional defense industry, such as establishing a 'pan-European military equipment market,' as an important goal. At the same time, it emphasizes the need to 'strengthen partnerships with like-minded countries,' explicitly stating that "especially with Indo-Pacific partners such as Japan, South Korea, Australia, and New Zealand, which signed security and defense partnerships last year, opportunities for defense industry cooperation should be sought."
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