Reuters 'Largest arms dealer not disclosing Korean prices will face obstacles'
Reuters reports that South Korea is not an arms manufacturer, but “the largest arms dealer without disclosing prices,” and the rapid spread of American weapons in Europe, which is hesitant about arms buildup, led to a process in which Korea contributes to Polish munitions manufacturers as the “largest dealer.”
The Korean press cited it as “the fastest arms manufacturer”, but the analyst who actually interviewed it denied it, saying that “the plan will face obstacles.”
“South Korean companies do not disclose unit prices for weapons, which are often sold along with support vehicles and spare parts,” said Reuters. We are laying the groundwork for a military industry that we hope will satisfy Europe's arms hunger in the future."
The article, which interviewed 13 officials about the arms trade between South Korea and Poland, concludes with Sash Tusa, a defense and aerospace analyst at the UK-based Agency Partners, saying that “both countries have well-established defense industries. But long-term plans will face obstacles," he told Reuters. "The political winds may change, reducing demand for weapons such as howitzers and tanks."
Reuters interviewed those directly involved in the deal between South Korea and Poland and said, “They see the agreement as a blueprint for expanding South Korea’s influence through international public-private partnerships and consortiums and achieving its ambition to become one of the world’s largest arms suppliers. “South Korean and Polish officials said the partnership helped conquer the European arms market even after the war in Ukraine, as South Korea delivered high-quality weapons faster than other countries, and Poland provided manufacturing capabilities and a sales pipeline to Europe. He said it would be.”
Oskar Pietrewicz, a senior analyst at the Polish Institute for International Affairs, told Reuters that "country interest in South Korea's proposals may grow given the limited production capacity of Germany's defense industry, a major arms supplier in the region."
"This will be a selling point for future customers," South Korean arms industry executives told Reuters, revealing a deal to expand arms from South Korea to match the European arms market standardized on American-made weapons.
"(South Korea's) self-propelled guns use NATO standard 155mm ammunition, have a computerized fire control system, are designed to be easily integrated into command and control networks, and offer performance comparable to more expensive Western options," Reuters said. It is run by major powers like India.”
Korea's K self-propelled howitzer has been expressed as a 'Korean-made weapon' by adding options to the basic design of the US 155mm howitzer, and in the transfer of fighter production facilities according to Lockheed Martin's K-16 discontinuation plan, the basic blueprint and royalty relationship have been exchanged with the Korean government. However, it seems that US arms manufacturers have increased arms trade through South Korea to Europe and Southeast Asia in an arms augmentation strategy to expand expensive raw material parts and design technology royalties.
South Korea's nuclear power plant exports entered the Middle East with a "Korean-style nuclear power plant," but Westinghouse, which initially held the blueprint, demanded intellectual property rights for the original technology through a lawsuit as South Korea's nuclear power plant export contracts grew a few decades later.
According to NH Research & Security, Hanwha Aerospace's K-self-propelled howitzer occupies 55% of the US-standard 155mm global howitzer market, and the share is expected to increase to 68% with the Polish transaction.
In World War II, the 155mm, forged by the United States, was adopted as the standard howitzer in Europe.
With the support of US arms manufacturers, South Korean weapons were designed to be compatible with the US and NATO systems, and as a result, Korean weapons rapidly expanded to the European market, with the Stockholm International Peace Research Institute (SIPRI) recording a US share of 65% followed by France's 8.6% last year. rose to 4.9%.
Lukasz Komorek, head of export projects at the state-owned Polish Armament Group (PGZ), said: “The agreement (between Korea and Poland) establishes a consortium of Korean and Polish companies to manufacture weapons, maintain fighter jets and, ultimately, other European countries. It will provide a framework to supply to the country,” he told Reuters.
Reuters reported that officials in Seoul and Warsaw said, “This will include making South Korean weapons with licenses in Poland.” said.
According to SIPRI, South Korean arms sales in Asia, which accounted for 63 percent of defense exports from 2018 to 2022, occurred amid regional arms build-up due to US-China competition.
Amid US-China competition, South Korea is working with Indonesia to develop the KFX fighter, and Polish leaders have expressed interest in the project, Reuters reported.
Malaysia made an almost $5 billion purchase from the FA-1 this year, and Korea is working to secure a $1.2 billion contract to supply Australia's next-generation infantry fighting vehicle.
"Asian countries see us as very attractive partners in a defense agreement that we all work to prepare for escalating tensions," an anonymous South Korean diplomat told Reuters about the arms expansion. "We are allies of the United States, but not the United States." In the Southeast Asian arms market, which is growing under pressure from China, it distinguished between 'US weapons' and 'Korea-sold weapons'.
The Reuters report is 'Korea's competition to become the world's largest arms dealer'. South Korea signed a $13.7 billion arms deal with Poland, a NATO member and former Soviet Union country, last year during the Ukraine war, helping Europe become a relief from arms famine. done.
In the same way as weapons brokers in the West, the exact unit price of weapons is secret from the beginning and the contract is signed without disclosure, providing support vehicles or additional services, selling spare parts, and delivering prototypes correctly.
Sales of the Korean version of the US fighter F-16 generate a profit of more than 100 billion won per unit in the available cost after sale, as the original manufacturer's upgrade cost for field input to the battlefield is similar to that of the basic type.
The F-15k that Boeing sold to Korea was worth 100 billion won, and the K-15EX upgrade cost was 90 billion won.
In the export of Korean-style nuclear power plants, KHNP requested mediation from the US government for Westinghouse's lawsuit over intellectual property rights, and attempted to apply the 'Korea exception', a long-standing transaction method with the Korean government.
Cho Woo-rae, vice president of global business and strategy at Korea Aerospace Industries, said, "Continued tensions with North Korea keep South Korea's military production lines running and mean weapons are being developed, tested and upgraded under high-pressure conditions." deal' was indicated.
In this article, Reuters said, “President Yoon said in a Reuters interview last month that South Korea can expand aid to Kiev beyond humanitarian and economic aid if Ukraine suffers a massive civilian attack.” It said that it approved the weapon parts.
President Yoon said on the 30th, “Peace without freedom is unsustainable in any case, and a country that respects the freedom of its own people can also respect the freedom of other countries.” We will further expand responsible diplomacy and contribution diplomacy,” he told the delegation of the international group The Elders.