The South Korea defense industry wants to expand its collaboration with the United States to focus less on buying, more on co-development.
Kim Young Hoo, executive vice chairman of Korea Defense Industry Association (KDIA), called for a more "mutually beneficial" relationship in an interview with Defense News, even as he called the existing partnership with the US government and industrial base "terrific."
The shift is less the result of dissatisfaction in US-South Korea relations and more a reflection of the evolution happening among South Korea companies in defense capabilities.
"As you know, just 40 years ago, Korea had nothing [in defense manufacturing]. But thanks to the help of the US we have made much progress," said Hoo, a retired lieutenant general, speaking through an interpreter. "Circumstances have been changing. Korea has grown a lot, developed technology. We now need a new cooperation model."
"In the past, it’s been ‘we get the technology from the US, then we assemble,’" he continued. "That model worked well. But we have new needs to develop together."
South Korea boasts expanding domestic capabilities, supporting manufacturing of advanced destroyers, frigates, amphibious assault vessels, and attack submarines. Its T-50 trainer design, developed by Korea Aerospace Industries (KAI) with Lockheed Martin, as well as its KF-X indigenous fighter, could drive gains in the aerospace market.
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South Korea’s global push to grow domestic defense industries reflects a more expansive trend, in fact, which Avascent noted could have a dramatic impact on the Western defense export market over the next decade. More than 50 percent of defense spending in South Korea filters domestically, according to a May report from Avascent titled "Dynamics of International Military Modernization 2016."
But Hoo is quick to note that US companies are crucial to the growth of South Korea’s defense industry. South Korea’s strength currently is in what he calls "conventional weapon systems."
"We need more advanced technology, working with US companies," Hoo said.
To enable continued growth of the South Korea defense industry, Hoo envisions new forms of business-to-government and business-to-business models, with development of a consortium that includes domestic companies participating in co-development, co-manufacturing and co-marketing with US companies. KDIA, which was established in 1976 as a non-profit working for the Ministry of National Defense in South Korea to govern the defense industry of the country, is attending the AUSA Annual Meeting in hopes of strengthening alliances with US services and companies.
"We are looking for a cooperation model from the US, since we have a [requirement] for high tech capabilities," Hoo said. "At the same time, Korea is in a tense situation with North Korea. We’re looking to [serve as a] supplier for developing new products with the US. We expect that would strengthen the safety and security of Northeast Asia and the Korean Peninsula."
Specifically, as North Korea grows more threatening, the focus for co-development would be on aerospace – radar and missile systems, as well as anti-jamming technology. Hoo also encourages the expansion of policies to enable South Korea companies to sell products into the US military.
"We’ve been very cooperative with the US defense industry," Hoo said. "But there are more opportunities. We can grow together, achieving a mutual interest."
Jill Aitoro is editor of Defense News. She is also executive editor of Sightline Media's Business-to-Government group, including Defense News, C4ISRNET, Federal Times and Fifth Domain. She brings over 15 years’ experience in editing and reporting on defense and federal programs, policy, procurement, and technology.
