Korean arms companies are on the front lines of defense here and abroad

Hanwha Aerospace, KAI, LIG Nex1, Hyundai Rotem and DSME have seen a surge in orders as more countries are significantly upping their arms budgets in the wake of the Russia-Ukraine war. Experts say the Korean defense industry may benefit from...

Foreign defense officials visit the DX Korea 2022 ground defense exhibition held at Kintex in Gyeonggi on Sept 21. 2022. [YONHAP]

Hanwha Aerospace, Korea Aerospace Industries (KAI), LIG Nex1, Hyundai Rotem and Daewoo Shipbuilding & Marine Engineering (DSME) are on the front lines of Korea's defense industry.

Established in 1977, Hanwha Aerospace is the sole producer of aircraft engines in Korea and specializes in manufacturing engines, aircraft components and developing defense systems. Hanwha Aerospace recently received a conditional approval from the Fair Trade Commission to acquire DSME to add a shipbuilding component to its arms portfolio.

KAI is a leader in the national aviation industry and was established in 1999 when the government consolidated aircraft makers to merge their aviation capabilities into one.

LIG Nex1 specializes in developing weapon systems such as precision guided munitions, surveillance and reconnaissance radar and communication systems.

Hyundai Rotem is a heavy industry company contributing to national security by developing tanks and armored vehicles.

DSME is one of the "Big Three" Korean shipbuilders, along with Hyundai Heavy Industries and Samsung Heavy Industries, that has supplied Korea and others with warships for more than four decades.

These companies have seen a surge in orders as more countries — especially in Europe — are significantly upping their arms budgets in the wake of the Russia-Ukraine war.

The quintet had a total order backlog worth 100.5 trillion won ($74.9 billion) as of the end of last year. Hanwha Aerospace topped the list with 52.7 trillion won, tailed by KAI at 24.6 trillion won, LIG Nex1 at 12.3 trillion won, DSME at 6.4 trillion won and Hyundai Rotem at 4.5 trillion won.

Experts say the Korean defense industry may benefit from the tension among blocs in the era of a "New Cold War."

"Opportunities for Korean defense companies will enlarge as established arms exporters such as the United States fail to meet the global weapons demand," said Lee Sang-heon, an analyst at Hi Investment & Securities. "Above all, Korean weapon systems are highly compatible with U.S. weapons because they are developed in accordance with NATO standards."

Hanwha Aerospace

K-9 Thunder self-propelled howitzers participate in a live fire exercise at a firing range in Paju, Gyeonggi, on Sept. 30, 2022. [REPUBLIC OF KOREA ARMY]

Hanwha Aerospace merged with Hanwha Group’s two other defense sections — Hanwha Defense in December last year and Hanwha Munitions on April 1 — and strengthened its presence in the aerospace and arms industry.

The K-9 self-propelled howitzers are Hanwha Aerospace’s best-selling weapons system, operated by nine countries. The K-9 User Club, a meeting for countries operating the K-9 Thunders to share know-how and experiences in operating the artillery system, had its second gathering in Norway in February. The K-9 accounted for more than 50 percent of the world’s self-propelled artillery exports market in the 21st Century and is expected to near 70 percent once scheduled contract volumes are delivered.

Hanwha Aerospace is leading the domestic aircraft engine sector. Aircraft equipped with Hanwha-made engines include the F-15K fighter jets, T-50 trainer jets and Surion utility choppers. The aerospace company led the integrated development of the next-generation fighter K-21 Boramae’s engines and localization of major parts of the homegrown aircraft through a technology partnership. Hanwha’s engine technology is also implemented in the Nuri rocket.

Hanwha is strengthening its export capabilities by opening more overseas subsidiaries. Its European and Middle Eastern child companies are due in the first half of this year and are expected to back the exports of additional batches of K-9s and K-239 Chunmoo multiple rocket launchers to the two regions. It currently has subsidiaries in the United States and Australia.

The K-239 multiple-launch rocket system (MLRS) can double the firepower of the M142 Himars (high mobility artillery rocket systems) and are capable of firing artilleries of various calibers: K-136 Kooyong’s 130-millimeter rockets, M270 MLRS’ 227-millimeter rockets and 230-millimeter guided rockets. Hanwha Aerospace will begin delivering 288 Chunmoo units to Europe later this year following a 5-trillion-won ($3.7 billion) deal signed with Poland in November 2022 to supply the MLRS.

Hanwha Defense Australia’s AS-21 Redback is competing with Germany’s Rheinmetall KF-41 Lynx for Australia’s Land 400 Phase 3 program to renew the country’s infantry fighting vehicle force. Hanwha Aerospace USA formed a consortium with U.S. military vehicle supplier Oshkosh Defense to participate in the development project for the U.S. Army’s next-generation optionally manned fighting vehicle.

Korea Aerospace Industries

The FA-50 light attack jets fly in a formation during the Seoul ADEX 2021 exhibition event in October 2021. [MINISTRY OF NATIONAL DEFENSE]

Hopes are high for the domestic aircraft FA-50, KF-21, Surion and light armed helicopter made by KAI in the global market.

A total of 138 T-50 trainer jets, including the FA-50 light attack aircraft variants, were sold overseas by last year. If the T-50 family jets operated by Korea’s Air Force are added to the tally, over 300 units will be in airspaces around the globe once all deliveries are made, the most among all aircraft that are equal in rank. The T-50 family maintains a competitive edge in the market with proven stability, superior performance and low operational maintenance cost.

The FA-50 Fighting Eagle is looking to enter the U.S. market, having secured a foothold in Asian and European markets. The U.S. Air Force’s trainers are near obsolete, and the U.S. Navy is also reportedly having difficulty conducting planned flight training on rusty wings and faulty engines.

Around 500 trainer jets are expected to be in demand in the near future for the Air Force’s Advanced Tactical Trainer, the Navy’s Tactical Surrogate Aircraft and the Undergraduate Jet Training System initiatives, expected to be in full motion within the next two to three years.

The success of the FA-50s opened opportunities for other indigenous jets.

Following its maiden flight in July 2022, the KF-21 Boramae reached supersonic speed and completed active electronically scanned array radar-equipped flights and nighttime flights this year. The 4.5-generation fighter jet also pulled off weapons-release tests last month. The KF-21, capable of serving the role of a 6th-generation future aircraft through manned-unmanned teaming, awaits market introduction in the 2030s.

This year marks the 10th anniversary of the KUH-1 Surion’s fielding and is expected to be the first year of its export. The Surion is the main utility helicopter for the Korean Army and is deployed by the police, fire, forest and coastal authorities as transport aircraft. The multi-role helicopter is an alternative platform for countries that operate Russian-made helicopters facing sanctions from the United States.

LIG Nex1

The LIG Nex1 Cheongung II missile interceptors [DEFENSE MEDIA AGENCY]

LIG Nex1 is a long-time arms developer and manufacturer that has bolstered Korea’s attempts to solidify its national defense capability.

Some of LIG Nex1’s major products include: midrange surface-to-air missile (M-SAM) system “Cheongung II” that intercepts low- and medium-altitude air and ballistic missile threats; multifunctional radar system “TPS-880K” that detects small unmanned aerial vehicles (UAV), combat aircraft and guided missiles; counter-battery radar “TPQ-74K” that detects enemy artilleries in counterfire warfare; man-portable anti-tank mid-range guided missile “AT-1K Raybolt”; coastal defense guided missile system “low-cost guided imaging rocket”; heavyweight torpedo “K-731 White Shark”; lightweight torpedo “K-745 Blue Shark”; and anti-submarine rocket “Red Shark.”

The arms manufacturer is currently developing a close-in weapon system to intercept supersonic anti-vessel missiles, electronic warfare equipment for vessels, a long-range surface-to-air missile (L-SAM), Korea’s first long-range air-to-surface missile and a long-range artillery interception system.

LIG Nex1 is amassing efforts to research and develop core abilities for future warfare, including KF-21 Boramae’s avionics equipment, multipurpose unmanned helicopters, small reconnaissance drones, self-driving technology, UAV avionics, ground control system, manned-unmanned teaming, laser and hypersonic technology.

The company laid a new milestone for Korea’s defense industry when it signed a $3.5 billion contract to export Cheongung II M-SAM missiles to the Middle Eastern defense market in January last year.

The Cheongung II deal, with a number of system companies such as Hanwha and Kia, as well as small and medium-sized enterprises chipping in, boosts the nation’s industrial force as a whole by creating new, quality jobs and enhancing the guided weapons technology.

Hyundai Rotem

A Hyundai Rotem K2 battle tank arrives at a port in Poland on March 23. [HYUNDAI ROTEM]

The K-2 Black Panther is undergoing its third mass production in Korea, having earned global recognition for its superior performance. If Hyundai Rotem is able to provide a stable supply of its K-2 tanks, it will be able to increase its market presence on top of the growth in the K-2-related industrial ecosystem and stronger productivity.

Hyundai Rotem possesses a high-quality series tank lineup such as the K-600 combat engineering vehicles (CEV) in addition to the K-2 main battle tanks. The K-600 Rhino is a CEV optimized for demining that overcomes obstacle zones and secures a maneuverable road. The mine-clearing plows on the front of its frame pushes aside any buried mines. It also emits a magnetic field from its mine-disabling device to detonate and remove magnetic mines.

The K-806 and K-808 White Tigers are armored personnel carriers (APC) suitable for modern warfare with a high frequency of limited warfare. The two models are capable of transporting troops rapidly and breaking through rough terrain.

The K-806 is a 6x6 APC for troop transport and reconnaissance missions, and the K-808 is an 8x8 infantry fighting vehicle with reinforced maneuver capabilities fit for harsh conditions.

Some other improvements in the K-808 compared to K-806 are the run-flat tires that allow driving with a punctured tire and the central tire inflation system that automatically adjusts tire inflation based on the road contact pressure. Its surface propulsion system ensures enhanced mobility in mountainous and riverine terrains.

The next on the agenda for Hyundai Rotem’s research and development is unmanned systems.

The HR-Sherpa is a civilian and military multipurpose unmanned vehicle equipped with a six-wheel electric driving system and capable of 360-degree rotation. Its airless tires enable continuous missions free of tire punctures. The unmanned ground vehicle serves different purposes — security, reconnaissance, fire support and evacuation of the wounded and supplies — by varying the devices equipped on board. It is also capable of unmanned driving, such as remote driving, leader-follower driving and waypoint-based autonomous driving.

Implementing the technology used in HR-Sherpa, Hyundai Rotem delivered the multipurpose unmanned ground vehicle, the nation’s first unmanned military vehicle, to the Korean Army last year.

Daewoo Shipbuilding & Marine Engineering

ROKS Eulji Mundeok, first from the right, participates in a field training event in the waters of West Sea on March 21. [REPUBLIC OF KOREA NAVY]

The 7,000-ton Aegis destroyers and 209-ton, 214-ton and 3,000-ton submarines are built at DSME's Okpo Shipyard in Geoje, South Gyeongsang, and exported overseas.

DSME registered as a defense industry company in 1981 and has built 105 warships since. Notable exports include the logistic support vessel (LSV) contract for the British Navy’s first-ever overseas vessel order, a contract for an LSV with hospital ship functions for the Norwegian Navy, and Korea’s first submarine export.

Starting with the patrol combat corvette ROKS Anyang, delivered to the Korean Navy in 1983, the shipbuilder has produced 1,500-ton frigates, patrol vessels and patrol boats for over 30 years. It built more than 40 surface vessels to boost naval power, including three 3,000-ton destroyers, three 4,000-ton destroyers and one 10,000-ton destroyer through the Korean Destroyer eXperimental, or KDX, destroyer projects.

The KDX-III ROKS Yulgok Yi I (DDG-992) is equipped with world-class anti-ship, anti-air and anti-submarine capabilities. The destroyer can detect 1,000 targets simultaneously and strike 20 at the same time.

DSME has built nine 209-ton, three 214-ton and four 3,000-ton submarines over three decades since it was first contracted to deliver the 209-ton ROKS Jang Bogo to the Korean Navy in 1983.

When DSME won a deal from Indonesia’s Defense Ministry in December 2011 to build three 1,400-ton submarines for $1.1 billion, Korea became the fifth country in the world to export a submarine.

DSME was contracted by the Korean Navy to build the 3,000-ton Jangbogo-III submarines in December 2012. ROKS Dosan Ahn Changho, the first domestically-developed submarine and the lead ship of the Jangbogo-III Batch 1 vessels, was delivered to the Navy in August 2021. The second Jangbogo-III submarine ROKS Ahn Mu was delivered on April 20. Two vessels of Jangbogo-III Batch 2 are currently under construction in DSME’s special ship shipyard.

BY SOHN DONG-JOO, CHOI HYUN-MOK [sohn.dongjoo@joongang.co.kr]