[Yang Nakgyu's Defence Club] The U.S. Weapons Procurement Bill Presented in Tariff Negotiations

Japan and EU Pledge to Buy U.S. Weapons in Tariff Talks
U.S. Firms Favored in Projects Like Airborne Early Warning and Control Aircraft

Amid ongoing tariff negotiations between South Korea and the United States, attention is focusing on the prospect of a U.S. weapons procurement bill. The presidential office has revealed that the purchase of American-made weapons is included in the negotiation agenda, making it likely to become one of the key topics in the talks.

On July 31, a government official stated, "In addition to the deadline for mutual tariff imposition between South Korea and the United States, increased defense spending and the purchase of American weapons are also part of the negotiation agenda. However, it is difficult to comment on the extent to which negotiations have progressed."

The reason the government added the U.S. weapons procurement bill to the agenda is largely due to the influence of Japan and the European Union (EU), both of which concluded their own tariff negotiations earlier. On July 24, Japan entered into tariff negotiations and ultimately agreed to purchase billions of dollars worth of defense equipment annually. Yoshimasa Hayashi, Japan's Chief Cabinet Secretary, emphasized at a press conference, "These are purchases based on already established defense capability enhancement plans, not new acquisitions. We will prioritize what best strengthens Japan's defense capabilities and determine the specific models and quantities accordingly."

The EU has taken a similar approach. In exchange for agreeing to a tariff level that is half of the originally announced 30% by U.S. President Donald Trump, the EU also committed to large-scale purchases of American-made weapons. While the EU did not disclose the exact amount, it announced plans to buy a "substantial volume" of U.S. military equipment, making American products the top priority in its rearmament budget, rather than Korean-made alternatives. Michael Brown, senior researcher at multinational financial services firm Pepperstone, told the New York Times, "The biggest beneficiaries of the U.S.-EU tariff deal are American defense contractors."

The South Korean government also has a precedent for purchasing U.S. weapons during the first Trump administration. In November 2017, during President Trump's visit to South Korea, he raised the issue of increasing South Korea's share of defense costs at the U.S.-Korea summit. At the same time, the U.S. pushed for weapons purchases, rapidly accelerating arms acquisition projects. Major acquisitions included the JSTARS ground surveillance aircraft, F-35A fighter jets, Global Hawk high-altitude unmanned reconnaissance aircraft, and P-8A maritime patrol aircraft.

Given these factors, it is expected that large-scale weapons procurement projects that have been sluggish may now proceed in succession. Between 2022 and 2024, South Korea's purchases of American weapons amounted to approximately 27 trillion won. If some acquisition projects involving U.S. weapons are reconsidered, the total could increase further.

One key project is the ongoing second phase of the Airborne Early Warning and Control (AEW&C) aircraft program. This project, which involves acquiring airborne command and control aircraft known as "command posts in the sky," is being contested between U.S. company L3Harris and Sweden's Saab. Boeing, which participated in the previous three rounds of bidding, ultimately withdrew due to "cost concerns." There is analysis suggesting that a selection could be made by the end of this year.

There is also a possibility that previously abandoned weapons procurement projects could be revived. One such example is the second phase of the heavy attack helicopter program, which involves the additional acquisition of 36 AH-64E Apache Guardian attack helicopters. This project, initiated during the Moon Jae-in administration to support the Army's offensive deep maneuver operations and enhance rapid maneuver capabilities, was expected to result in the purchase of Boeing's AH-64E. Although 10 billion won was allocated for this project this year, the final budget was set at just 300 million won during the review process?effectively a full cut. Within the military, there are growing arguments about the declining utility of attack helicopters due to the increased importance of drones in the Ukraine war. The U.S. Army has also decided to retire its older Apaches.

The additional acquisition of aerial refueling tankers may also be revisited. The Defense Acquisition Program Administration (DAPA) completed a feasibility study in 2023 and planned to spend a total of 1.2 trillion won to purchase two more aerial refueling tankers from abroad by 2029. The current fleet of four "Cygnus" (KC-330) aircraft acquired in the first phase was deemed insufficient. The South Korean Air Force intends to acquire additional F-35 stealth fighters and KF-21s, but the number of aerial refueling tankers is considered severely lacking. For the additional procurement, Boeing is proposing its KC-46A model, which is currently used by the United States, Japan, and Italy.

The project to acquire new presidential helicopters is also expected to favor American defense companies. DAPA recently launched the "Command Helicopter-II Project," worth 870 billion won, to acquire four new presidential helicopters. The goal is to replace the current presidential helicopters, which have been in service for 18 years, with new models. Four candidates are under consideration: the H225M from France's Airbus, the AW101 from Italy's Leonardo, the S-92A+ from U.S. company Sikorsky, and the Bell-525 from Bell. This sets the stage for competition between European and American firms. Sikorsky's S-92 is the same model as the currently operated VH-92 presidential helicopter. The U.S. presidential helicopter, known as "Marine One," also uses the S-92.

A military official stated, "Following the tariff negotiations, the proportion of American weapons in our procurement may increase, and we should also consider ways to recoup some of the costs by winning contracts for MRO (maintenance, repair, and operations) projects."