[Defense Brief] The Resurgence of World War II Axis Powers

The resurgence of the Axis powers from World War II is striking. This refers to Germany, Japan, and Italy. These countries experienced the bitter taste of defeat in World War II. They were forced to shut down their defense industries. Not only were they prohibited from producing their own weapons, but exports were also banned. However, with the inauguration of the Donald Trump administration in the United States this year, marking the 80th anniversary of the end of the war, their stance has changed. With Europe taking the lead in reducing dependence on the United States, they are now preparing for a "second defense industry renaissance."

Germany is at the forefront. Volkswagen, the automotive giant, has decided to enter the military vehicle market. Last year, Volkswagen recorded sales of 51.543 trillion won and operating profit of 3.032 trillion won. However, the internal situation is less impressive. Compared to the previous year, operating profit dropped by 15%, and the number of vehicles sold decreased by 3.5%. The operating margin was 5.9%, barely exceeding the minimum survival threshold for companies, which is considered to be 5%. Volkswagen plans to leverage its automotive technology and production infrastructure in the defense industry. The company aims to revive its reputation from World War II, when it produced the off-road vehicle "Type 181 Model," cruise missiles, and landmines.

Closed train factories have also been revived. KNDS, a German-French joint venture, acquired the vehicle plant of the railway company Alstom in Goerlitz, eastern Germany. Starting next year, KNDS plans to begin producing parts for the Leopard 2 main battle tank and the Puma infantry fighting vehicle. Industry conversion is also bold. Deutz, which has produced tractors, excavators, and heavy machinery engines for 161 years, has decided to utilize its own technology. Deutz expects to generate about 2% of its annual revenue of 2 billion euros (approximately 3 trillion won) from the defense industry sector.

German chemical manufacturer AlzChem has decided to restructure its business. The company will utilize nitroguanidine, an ingredient in herbicides used to increase crop yields. Nitroguanidine is highly explosive and can be used as a propellant for long-range artillery shells. Meyer Werft, Germany's largest shipbuilder founded in 1795, plans to begin full-scale construction of military vessels such as frigates. While orders for its main product, cruise ships, are not what they used to be, military vessels are experiencing a boom due to increased defense spending across Europe.

Japan is also taking action. It has joined forces with the United Kingdom and Italy to develop a sixth-generation fighter jet by 2035, under the Global Combat Air Programme (GCAP). The goal is to develop a fighter with capabilities surpassing those of the latest fifth-generation stealth fighter, the F-35, from the United States. Japan is also targeting the maintenance, repair, and overhaul (MRO) market. Leveraging the fact that the home port of the US Seventh Fleet is in Yokosuka, Japan is courting the US Navy for ship MRO contracts. Japan is also actively pursuing defense exports. Although it banned arms exports after its defeat in World War II, the Shinzo Abe administration partially lifted the ban in 2014, and now defense exports are seen as a new growth market. Last month, the scale of "DSEI Japan 2025," held in Chiba Prefecture near Tokyo, was expanded. Over 450 defense companies from 41 countries participated, double the number from last year.

These countries are highly likely to become major competitors to "K Defense." The threat is real. Therefore, we must also prepare. Instead of promoting ongoing defense exports as the current administration's achievements, we need to introduce policies for "K Defense" looking ten years ahead. In fact, the Lee Jaemyung administration should have presented well-prepared defense industry policies even before taking office. After decades of being associated with corruption, K Defense is finally gaining recognition. While the government is making policies, implementing them, and expecting results, there are concerns that, like the Axis powers that fell into stagnation after World War II, we might fall behind.