[Defense Brief][Column] Spoons on the K-Defense Industry Table

K-defense industry is now in the spotlight. Since last year, South Korea has ranked among the world's top 10 defense exporters for two consecutive years. Rapid changes in international security have played a significant role. The demand for weapons has surged, particularly in Eastern Europe, following the Russia-Ukraine war. Instability in the Middle East, the possibility of armed conflict between India and Pakistan, and Europe's efforts to reorganize its defense sector have also had a major impact. On top of this, the three key strengths of K-defense?high quality and performance, reasonable prices, and fast delivery?have all aligned perfectly.

As the K-defense industry has prospered, interest has grown. Many are now trying to get a share of the pie. First are the presidential candidates, who have made grand promises. Lee Jaemyung, the Democratic Party's presidential candidate, has pledged to foster the K-defense industry by increasing investment in defense science and technology, strengthening the ecosystem, and securing a lead in the maintenance, repair, and operations (MRO) market through the creation of a defense industry innovation cluster. The problem is that there are no concrete plans. Kim Moonsu, the People Power Party's presidential candidate, is no different. He has promised to expand legal, institutional, and financial support to make South Korea one of the "four major K-defense powers." Like Lee, however, he has not provided any details on how to achieve this. Lee Junseok, the Reform New Party's presidential candidate, does not even have any direct pledges regarding the defense industry. All he has done is emphasize the need to advance the defense sector at a foreign press club briefing on April 28.

The defense industry points out that even the retired generals who have declared support for the presidential campaigns are problematic. The "Republic of Korea Cheongunmanma National Security Advisory Group," which supports Lee Jaemyung, is a prime example. Although they all claim to be defense industry experts, their expertise is not evident. It appears they are merely jockeying for positions in government agencies or companies related to the defense industry in the next administration.

It's not just the retired officers. The Ministry of National Defense is also eyeing the K-defense industry. The ministry plans to amend the law to allow military personnel and government officials to receive expense support from defense companies when traveling abroad for defense exports. The idea is that having active-duty soldiers, who actually use the weapons, explain them directly at overseas defense exhibitions would help boost K-defense exports. However, the industry argues that even the overseas trips of government agency heads are already excessive, and that such practices could lead to defense industry corruption under the guise of hospitality.

The Ministry of National Defense's requests for sponsorship have been a recurring issue. This was evident during the 75th Armed Forces Day parade in 2023. Citing budget shortages, the ministry received donations and sponsorships from private companies, including defense firms and banks, which drew criticism. Token sponsorships must also stop. Last year, even the Defense Acquisition Program Administration and Army Headquarters approved the use of sponsorship names for "DX KOREA 2024," led by private companies, and "KADEX 2024," hosted by the Army Association. As a result, the two exhibitions, both billed as the "world's largest ground weapons exhibition," were held a week apart at different venues. Only the defense companies, forced to participate, suffered.

Various academic societies, mostly led by retired officers, are also problematic. Every year, they recruit for high-level courses, with the real aim being to collect participation fees from defense companies. These companies are burdened by the ever-increasing number of seminars, academic conferences, and exhibitions they are expected to attend. Some even lament that they may have to forgo participation in overseas exhibitions, which are crucial for exports, due to domestic events.

K-defense still has a long way to go. There are many challenges to address, including offset trade, technology fees, streamlining weapon acquisition procedures, and overlapping functions among government ministries. It is true that defense exports rose from $3 billion during 2018-2020 to $17.3 billion in 2022. However, exports plummeted to $14 billion in 2023 and $9.5 billion last year. We must not forget why Samsung sold Samsung Techwin and Samsung Thales to Hanwha in 2015. If people jump into the K-defense industry just to secure their own share, the companies that actually create value may leave, leaving only the spoons behind.