New dragon in the global arms market? What is the secret of success

The Russian-Ukrainian war has caused major shifts in global geopolitics, among them a huge demand for weapons

Author:
Valentyn Badrak
head of the Center for Army Research,
Conversion and Disarmament Studies
New dragon in the global arms market? What is the secret of success

South Korea has rapidly established itself among the world’s leading arms exporters thanks to production speed, the flexibility of its defense industry, and the ability to localize technologies for partners, as in the case of Poland, where Hyundai Rotem together with Polska Grupa Zbrojeniowa organized the production of K2PL tanks, and Hanwha Aerospace with WB Group created a joint venture to manufacture high-precision 239-mm CGR-080 rockets. Hanwha Aerospace, Hyundai Rotem, LIG Nex1, Korea Aerospace Industries (KAI), and Hanwha Systems recorded record profits of $1.7 billion in the first half of 2025, with Hanwha Aerospace alone earning about $1 billion, while Hyundai Rotem actively promotes the K2 tank, which Poland is purchasing in large numbers. LIG Nex1 shows growth through missile and air defense systems, while KAI develops the KF-21 fighter and FA-50 trainer jet, both sold at much lower prices than European counterparts. Korea actively transfers technologies, ensures compatibility with U.S. and NATO systems, and its products – from the K9 self-propelled howitzer and K239 Chunmoo MLRS to the new KF-21 aircraft and its own Cheonryong cruise missiles – are becoming competitive alternatives to expensive Western models. With record export growth (140% in 2022, reaching $17.3 billion) and large contracts with Poland, Egypt, and the UAE, the country is preparing to rise to fourth place among global arms exporters, gradually displacing traditional players in the market.

Read the full article [IN UKRAINIAN]

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