Korean companies draw interest at arms fair in UAE

The Korea Times

The Korea Times

National

Tue, September 26, 2023 | 05:15

Defense

Korean companies draw interest at arms fair in UAE

Posted : 2023-02-21 16:42

Updated : 2023-02-22 15:35

Defense Minister Lee Jong-sup, front center, looks at a concept aircraft displayed by Korea Aerospace Industries during the International Defense Exhibition and Conference in Abu Dhabi, Monday (local time). Courtesy of Ministry of National Defense

By Jung Min-ho, Joint Press Corps

2022 was a significant year for Korea's arms makers. Exports more than doubled to a record high of $17.3 billion (22.4 trillion won) from the previous year, with sales of domestically developed military hardware picking up around the world, including in Poland, a NATO member nation.

Optimism is prevailing among 29 Korean companies participating at a biennial arms fair in the United Arab Emirates (UAE), where potential buyers have been expressing great interest in the weapons and military technologies they offered. Buoyant with expectations, their representatives told reporters on Tuesday that they have high hopes for the year ahead.

"Potential buyers not only from the Middle East region but also from Southeast Asia, Africa and Europe have shown great interest … I believe there will be some good news to come," Kang Gu-young, president of Korea Aerospace Industries (KAI), said during the International Defense Exhibition and Conference (IDEX) in Abu Dhabi. "Our [successful] marketing here is expected to give momentum to the businesses in other regions."

One of the concept aircraft displayed at the KAI booth was a next-generation multi-mission cargo airplane ― a development project the UAE decided to join last month during President Yoon Suk Yeol's visit to the country.

Kang said the two sides have been discussing the details, such as how to determine and split the costs, as they share the view that the collaborative project is in the vital interest of both nations.

Hyundai Rotem, Hanwha Aerospace, Hanwha Systems, LIG Nex1 and Poongsan are among the Korean participants at IDEX, which runs until Friday. It is considered one of the largest international defense expos, attracting more than 1,350 companies from around 65 countries this time. The unprecedented scale indicates a growing interest in the defense industry amid Russia's war in Ukraine and a new Cold War climate.

Participants listen to an official from LIG Nex1, a South Korean defense company, during the International Defense Exhibition and Conference in Abu Dhabi, Monday (local time). Courtesy of LIG Nex1

Hanwha Systems exhibited the K21, better known as the AS21 Redback, an armored infantry fighting vehicle loaded with ground-to-ground missiles developed out of inspiration from the Cheongeom, which was developed first as an air-to-ground weapon for helicopters.

After Hanwha Systems and LIG Nex1 signed a deal in January 2022 to export its Cheongung-II medium-range surface-to-air missile system to the UAE, Hanwha Aerospace inked a contract in November to export nearly 300 K239 Chunmoo multiple rocket launchers to Poland.

Hanwha Systems CEO Eoh Sung-chul expressed hopes that the arms fair would open fresh opportunities for the company, saying he will continue exploring new partnerships overseas.

According to the Global Defense Market Yearbook 2022 released in December by the Korea Research Institute for Defense Technology Planning and Advancement, Korea was the world's eighth-largest arms exporter in the 2017-2021 period, after the United States, Russia, France, China, Germany, Italy and Britain.

Yoon has repeatedly said the industry is one of the nation's key potential growth engines. His administration has set the goal of improving the country's export ranking to fourth by 2027. If accomplished, its share of global defense exports will be about 5 percent of the world's total.

Defense Minister Lee Jong-sup met with the company representatives at IDEX, where he promised closer collaboration with private companies.

mj6c2@koreatimes.co.kr