K-Defense Industry takes the lead in exports with the goal of receiving $20 billion in orders this year

(Source: MBN News)

Minister of Trade, Industry and Energy Ahn Deok-geun visited the Sacheon headquarters of KAI (Korea Aerospace Industries) on April 18 and inspected the production site of the FA-50, which is accelerating its entry into overseas markets, and the domestically produced Surion helicopter, which is expected to be exported for the first time this year. , we listened to the export difficulties faced by the defense industry. Korea’s defense industry is playing a leading role in achieving Korean exports of $700 billion as the export performance of orders exceeding $30 billion over the past two years is gradually gaining momentum.

KAI, which Minister Ahn visited this time, has exported about 220 aircraft, including multipurpose fighters (FA-50), to Indonesia, Iraq, Poland, etc. based on price competitiveness and smooth follow-up support. Following the export agreement for 18 FA-50s with Malaysia last year, exports to new markets such as Africa are becoming visible this year, and the first domestically produced mobile helicopter, Surion (KUH-1), developed in 2013 to replace the ROK military’s aging helicopters, was also signed this year. The first export results are expected in the Middle East.

As the defense industry market is expected to grow to KRW 900 trillion by 2027 in accordance with the trend of expansion of defense spending in major countries around the world, the government also plans to provide all-out support in various ways to help our defense industry achieve its target of KRW 20 billion in orders this year.

First, we will strengthen support for defense industry exports, including trade finance and overseas marketing. First, through the Export-Import Bank and the Trade Insurance Corporation, we will provide trade finance (order finance + advance payment guarantee + production funds) of more than KRW 10 trillion this year just for defense industry exports and orders. In addition, the number of defense industry base trade centers around the world will be expanded to 32, and an export consultation session with global buyers will be held in connection with the Defense Industry Exhibition (KADEX).

Second, we support export expansion by strengthening the competitiveness of the defense industry ecosystem. The Ministry of Trade, Industry and Energy established a new defense industry support department last February, and based on the “Defense Industry Ecosystem Competitiveness Strengthening Measures” established on April 17, invested 400 billion won in research and development (R&D) funds in the field of high-tech defense industry and related industries in 2024 alone. We plan to promote the establishment of an “advanced defense technology roadmap” for convergence.

Third, KRW 29 billion in research and development (R&D) funds will be invested to increase the operational radius by developing the FA-50 in a single-seat version as well as the existing two-seat version, thereby supporting entry into the global market, including in North America, and developing Surion, a next-generation fighter ( We actively support the diversification of export items such as KF-21) and small armed helicopters.

Minister Ahn directly boarded and inspected aircraft at the multipurpose fighter (FA-50) and Korean helicopter Surion (KUH) production site, and said, “If K-Defense has been responsible for our security so far, it is now a promising industry for next-generation exports.” “I hope that it will also drive the economy,” he said, adding, “The government will also provide all-out support through a public-private team together with export-related organizations, including investing more than 10 trillion won in trade finance to strengthen the export competitiveness of the domestic defense industry.” 

Editor Miso

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