South Korea Defense Market – Attractiveness, Competitive Landscape and Forecasts to 2026

South Korea Defense Market – Attractiveness, Competitive Landscape and Forecasts to 2026, report provides the market size forecast and the projected growth rate for the next five years. The report covers industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It also offers insights regarding key factors and government programs that are expected to influence the demand for military platforms over the forecast period.

The failure of the peace process compels South Korea to enhance its defense expenditure and posture against North Korea. Against this backdrop, the country’s defense budget is expected to experience very high Y-o-Y growth of 3.6% in 2021 and is valued at US$43.7 billion. Over the forecast period, South Korean defense expenditure is anticipated to register robust growth of 5.58% over 2022-2026 and reach US$60.5 billion by 2026. The country’s acquisition budget, which includes research and development (R&D) funding, is also anticipated to register significant growth. It is projected to reach US$19.7 billion in 2026, from US$15.8 billion in 2022.

This report offers detailed analysis of South Korea defense market with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

Drivers of Defense expenditure include acquisition of new capabilities under the "Defense Reform 2.0" or DR 2.0 initiative and a concious effort to shift away from imports and develop domestic defense industry. Other factors such as tensions with Japan and the faliure of peace process with North Korea will continue to fuel defense spending over the forecast period.

Who Should Buy

– Defence Startups, Original Equipment Manufacturers (OEMs), Defence Planners, Aerospace and Defence Integrators, Venture Capital Firms, Government Agencies, Head of Marketing, Head of Sales, CEOs and Senior Executives.

– The concerned stakeholders can utilize the report to identify high growth segments and customize their offerings to match the project requirements.

– The Venture Capital Firms can utilize the project details, growth rate, and market size to identify and fund high potential startups.


In particular, it provides an in-depth analysis of the following –

– South Korea defense budget: detailed analysis of South Korea FY2021 defense budget broken down into market size and market share. This is coupled with an examination of key current and future acquisitions.

– Regulation: the procurement policy and process is explained. This is coupled with an analysis of South Korea military doctrine and strategy to provide a comprehensive overview of South Korea military regulation.

– Security Environment: political alliances and perceived security threats to South Korea are examined; there help to explain trends in spending and modernisation.

– Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years

– Competitive landscape and strategic insights: analysis of the competitive landscape of the South Korea defense industry.

Reasons to buy

– Determine prospective investment areas based on a detailed trend analysis of the South Korea defense market over the next five years

– Gain in-depth understanding about the underlying factors driving demand for different defense and internal security segments in the South Korea market and identify the opportunities offered.

– Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others

– Identify the major threats that are driving the South Korea defense market providing a clear picture about future opportunities that can be tapped, resulting in revenue expansion

– Channel resources by focusing on the ongoing programs that are being undertaken by the South Korea government

– Make correct business decisions based on in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country. The company profiles also includes information about the key products, alliances, recent contract awarded, and financial analysis, wherever available

Companies mentioned

Hyundai Rotem

Korea Aerospace Industries (KAI)

Lockheed Martin

Table of Contents

Table of Contents

Executive Summary

Defense Budget Assessment

Budgeting Process

Defense Market Size Historical And Forecast

Drivers Of Defense Expenditure

Analysis Of Defense Budget Allocation

Key Market Trends and Insights

Military Doctrine And Security Environment

Military Doctrine And Strategy

Primary Threat Perception

Political And Strategic Alliances

Geopolitical Social And Economic Scenario

Market Entry Strategy And Regulations

Procurement Policy And Process

Market Regulations

Market Entry Route

Key Challenges

Major M&A, Financing and Partnerships

Market Attractiveness And Emerging Opportunities

Market Attractiveness, 2021 2026

Top Defense Segments By Value

Import And Export Market Dynamics

Import Market Dynamics

Export Market Dynamics

Defense Platform Acquisitions

Defense Platform Acquisitions By Value

K 808 Armored Personnel Carrier

KUH 1 Surion

F 35A Lightning II

Light Attack Helicopter (LAH)

Dosan Ahn Changho class submarines (KSS III) Batch II

Ulsan Class Batch II

Sejong the Great class (KDX III)

Daegu class Frigate (FFX Batch II)

Fleet Size

Competitive Landscape

Defense Companies Operating In South Korea

Main Defense Companies


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