South Korea’s defence spending is set to grow from $45.2 billion in 2024 to $54.7 billion in 2029, primarily driven by the persistent threat posed by North Korea and to achieve the broader goal of strengthening the former’s overall security posture. This growth underscores South Korea’s determination to continue investing in the procurement of modern defense equipment to safeguard its regional interests from any unprecedented threats, says GlobalData, a data and analytics company.
GlobalData’s latest report, “South Korea Defense Market Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2024-29,” details the key drivers behind South Korea’s increasing defence budget. The report highlights that although there was a decline in defence budget from $46.2 billion in 2021 to $42.3 billion in 2022, it rebounded to $45.2 billion in 2024, indicating renewed interest in the defence sector by South Korea. The country’s acquisition budget component is also anticipated to register a steady growth and is projected to grow from $13.4 billion in 2024 to $16.5 billion in 2029.
Rouble Sharma, Aerospace & Defense Analyst at GlobalData, comments: “South Korea’s defence modernisation strategy centers around acquiring advanced platforms like F-35 aircraft, bolstering missile defence with multi-layered systems like Korea Air and Missile Defense (KAMD), and expanding naval capabilities by launching additional Aegis destroyers. South Korea also aims to create a robust domestic defence industry that not only caters to the needs of its Armed Forces but also positions itself as a formidable player in the global defence markets.”
The development of indigenous defence platforms, such as the KF-21 aircraft and the KSS-III submarine showcases South Korea’s intent of possessing technological self-sufficiency. These projects not only provide the South Korean military with cutting-edge equipment but also position South Korea as a competitive player internationally, opening opportunities for exports and industrial partnerships. South Korea has already witnessed success in exporting its domestically developed defence platforms to countries like Poland, Australia, and India in recent years.
Sharma concludes: “As North Korea continues to do more missile tests and expand its nuclear arsenal, South Korea will be compelled to stay in the path of rapid military modernisation to deter potential aggressions from the North. South Korea will be relying on its domestic defence companies to provide its armed forces with modern defence platforms and weapon systems, while looking for export opportunities to attain economies of scale in its defence production.”
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