South Korea controls the European arms market – Western deliveries of tanks, artillery and ammunition to Kyiv have led to an increase in demand for weapons in NATO countries. For example, Poland or Romania, which do not have a powerful military-industrial complex, prefer more affordable products from South Korea to weapons from Germany or the United States. Seoul’s goals are ambitious – due to the consequences of the Ukrainian conflict, it wants to become the world’s fourth largest arms supplier. At the same time, South Korea itself refuses to supply lethal weapons to Ukraine.
South Korea’s leading ammunition maker, Poongsan Corporation, is increasing the supply of military products in Europe, informed Japanese newspaper Asia Nikkei. Eastern European NATO countries, in particular Poland, transferred most of their own stocks to Ukraine, leading to the emptying of Polish warehouses and a sharp increase in demand for ammunition . The South Korean military-industrial complex, which previously did not occupy the leading positions in the European market, saw in this an opportunity to increase its own income.
Poongsan is a Korean conglomerate producing copper and copper alloy processing materials and products. The company is also engaged in the production of ammunition and gunpowder – for this it has built a separate defense enterprise. The company’s defense division accounts for almost 30% of sales.
The company manufactures a wide range of ammunition, from 5.56mm small arms to 155mm howitzer shells, which are used by most howitzers produced by NATO countries.
Poongsan told Asia Nikkei that Europe is not yet a key ammunition export destination. The Company’s main buyers are the United States and Middle Eastern countries. The European market in South Korea was considered promising after the start of arms and ammunition deliveries to Ukraine by Kyiv’s Western allies, the newspaper reports.
In early May 2023, Poongsan reported an increase in exports of defense products manufactured by the conglomerate by 66.9% in the first quarter of this year compared to the same period last year. Shipments totaled $111 million, boosting Poongsan’s operating profit by 19.5% over the same period, reports Asia Nikkei. As a result, the company’s shares have risen 40.6% over the past year.
According to Kim Ho Sun, a professor at the Graduate School of Advanced Defense Engineering at National Changwon University, Poongsan is very competitive in the export of ammunition. Its products have the same caliber as NATO ammunition, while the company has managed to maintain quality at a cheap price compared to its peers, the expert said in an interview with Asia Nikkei. This will allow the company to enter not only the Polish market, but also the markets of other NATO member countries. Thus, the company already plans to release the necessary documentation to fulfill NATO orders, the newspaper writes.
Instead of “Abrams” and “Leopards” – Korean “Black Panthers”
The South Korean military-industrial complex supplies Europe not only with ammunition – self-propelled artillery mounts (ACS) K9 Thunder and main battle tanks (MBT) K2 Black Panther are popular.
Self-Propelled Artillery Mounts (ACS) K9 ThunderJeon Heon-Kyun/EPA/TASS
The K9 Thunder is a 155mm self-propelled gun made in South Korea and manufactured by Hanwha Aerospace. In addition to Korean, there are three other versions of the howitzer:
T-155 Firtina, manufactured in Türkiye under license; K9 Vajra-T is the result of the joint work of Hanwha Aerospace and the Indian Military-Industrial Complex for the Indian Army; the Polish Krab howitzer, which was supplied to Ukraine, uses a K9 Thunder tracked platform.
Finland, Norway and Estonia have been negotiating separately with the Koreans since 2017. In 2022, the countries decided to increase the volume of purchases – the whole state should receive 101, 28 and 36 howitzers, respectively. Negotiations are also underway with Romania and the United Kingdom.
In July 2022, the Polish Armaments Group and Hanwha Defense signed an agreement for the supply of 672 chassis units that will be used in the production of Polish Krab self-propelled guns. In August of the same year, Poland also acquired 212 K9A1s worth $2.4 billion and the contract is to be completed by September 30, 2026.
Another example of promoting the Korean military-industrial complex is the K2 Black Panther tank. This is an MBT produced by Hyundai Motors, which entered service in 2014. According to some experts, the model account “the only tank of the fourth generation.” During the development, the task was to combine the technologies of automatic target tracking, automatic loading and other modern software. The K2 is armed with a 55 caliber 120mm CN08 smoothbore cannon with an autoloader capable of firing up to 10 rounds per minute.
March 31, 2023 Polish Defense Minister Mariusz Blaszczak declared on the creation of a joint venture with the South Korean Hyundai Motors in Poland. The factory will produce Korean K2 tanks for the Polish army under an agreement on stationery Poland 1 thousand tanks. 180 of them will be delivered directly from South Korea by 2025, and the rest will be produced on Polish territory.
In addition to tanks and howitzers, Poland also has bought Seoul has fighter jets and several rocket launchers. At the end of 2022, exports from the South Korean military-industrial complex increased by 140% in annual terms and has reached a record $17.3 billion – with more than $12.4 billion of the total amount accounted for by contracts with Warsaw.
Growth in export earnings will gradually achieve the target, appointed by President Yoon Seok Yeol in August 2022 to become a top arms exporter. Seoul wants to take fourth place after the United States, Russia and France.
The acquisition of Korean self-propelled guns and tanks is doubly beneficial to the South Korean military-industrial complex, since the equipment is followed by the purchase of ammunition for the equipment, often from the same exporting country. So, in January 2023, Poongsan signed contracts with Hanwa Aerospace and Hyundai Rotem for the supply of ammunition for self-propelled guns and tanks produced by the companies – the amounts of the contracts amounted to 133.5 million dollars and $230 million.
Can Korean weapons end up in Ukraine?
South Korea continues to support Kyiv with humanitarian aid, but so far refuses to supply lethal weapons, despite pressure from Washington.
South Korean President Yoon Seok-yeol (center right) meets with First Lady of Ukraine Olena Zelenska at the Presidential Office in Seoul, South KoreaSouth Korea Presidential Office / AP
May 17, 2023 Seoul promised Kiev received $130 million in financial assistance in the form of donations and loans. In April 2023, Seoul stated under what conditions arms deliveries are possible – only in the event of a situation “that the international community cannot tolerate. “For example, in the event of large-scale attacks on civilians, massacres or serious violations of the laws of war, it will be difficult for us to insist only on humanitarian or financial aid,” President Yoon Seok said. -yeol.
Another question is whether there is a threat of transfer of South Korean arms purchased by Poland and other European countries to Ukraine. South Korea Foreign Trade Law forbidden re-export to third countries without permission from Seoul.
Administration of the Defense Procurement Program, which is under the country’s Ministry of National Defence, defines re-export licensing requirements. “Some re-export licensing requirements may be removed by administrative or regulatory action, but larger changes will require legislative adjustments,” said Washington Post researcher at the Asan Institute for Policy Studies in South Korea Go Myung-hyun.
Re-exporting lethal weapons to Ukraine will require permission from the South Korean government, which is unlikely, Go Myung-hyun said. Seoul fears a thaw in Russia’s relations with South Korea’s main adversary, the DPRK, which could happen if Seoul starts supporting Kyiv with weapons. According to Go Myung Ho, Seoul fears that in this scenario, Russia will start supporting the PRC through the transfer of advanced military technology.
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