Korea-Japan Defense Industry Sales Increase by 25% Since 2022

"East Asia's Defense Boom Will Continue"

South Korea and Japan's defense industries are experiencing rapid growth fueled by increasing domestic and international demand.

On the 5th, a foreign visitor is closely examining K-defense products at the 'Korea Nara Market Expo 2025' held at KINTEX in Goyang-si, Gyeonggi-do. Photo by Yonhap News

According to the British weekly news magazine The Economist on the 21st (local time), the combined annual sales of key defense companies in both countries reached $63 billion (approximately 92 trillion won), marking a 25% increase since 2022. This growth rate surpasses that of the European defense industry, which was revived by the war in Ukraine.

Representatives of South Korean defense companies and government officials visited Ottawa, Canada, earlier this month, presenting everything from howitzers and rocket launchers to submarines for the Canadian military. The Economist attributed the success of South Korean and Japanese defense firms to domestic factors. Although these countries had long been net importers of weapons, their governments sought to expand domestically produced arms rather than relying solely on U.S. support.

The background is regional security concerns. According to the Stockholm International Peace Research Institute (SIPRI), South Korea's arms imports from 2020 to 2024 decreased by about 25% compared to 2015 to 2019. This indicates a sharp decline in dependence on imported weapons.

Japan also increased its defense budget in 2022 amid rising regional tensions. As a result, orders related to defense for major Japanese defense companies in 2023 are analyzed to have increased two to four times compared to the previous year.

The Economist forecasted that, as U.S. allies face pressure to self-defend following the inauguration of the Donald Trump administration, demand for weapons in South Korea and Japan is expected to rise, stating, "The defense boom in East Asia will continue."