The South Korean defense industry is closely monitoring the potential impact of the shooting incident targeting former U.S. President Donald Trump, as it has increased the likelihood of Trump’s re-election.
On Tuesday, it was reported that South Korea’s defense sector is closely monitoring November’s upcoming U.S. presidential election. During his previous term, Trump advocated for an “America First” policy, pushed for stronger U.S. defense cooperation, and pressured European NATO allies to increase their defense spending to avoid relying on U.S. security provisions. This influenced the South Korean government to increase its defense budget, thereby aiding the growth of its domestic defense industry.
Industry insiders anticipate that if Trump is re-elected, he may continue these policies, which they view as beneficial for South Korea’s defense sector. Enhanced military cooperation with allied countries, including Korea, could further expand technology development and export opportunities for South Korea through collaboration with the U.S.
South Korea’s defense industry is striving to penetrate the world’s largest defense market, the U.S. Recently, the South Korean defense company LIG Nex1 received positive results in tests conducted by the U.S. Department of Defense for its guided rocket, Bigung. During the final test launch in Hawaiian waters on July 12, the 2.75-inch guided rocket successfully hit all six targets. The FCT, a program designed by the U.S. Department of Defense, evaluates advanced technologies from defense companies in allied nations and integrates them into U.S. development and acquisition projects.
Bigung guided missile system, which was deployed to the South Korean Marine Corps in 2016, was developed as a weapon system that can be mounted on vehicles to strike North Korean hovercraft and the like. LIG Nex1 has independently developed a launcher for the 2.75-inch guided rocket that can be mounted on small uncrewed surface vessels for export.
Following the successful completion of this test launch, LIG Nex1 plans to focus on securing export contracts with the U.S. and expanding into global markets. LIG Nex1 began its activities with the U.S. Navy in October 2023 and is advancing its business in line with the unmanned operation concept under review by the U.S. Navy.
In June, Hanwha acquired a 100% stake in the Philadelphia Philly Shipyard, a U.S. shipyard company that operates U.S. Navy ship projects. Philly Shipyard, a U.S. subsidiary of Norway’s Aker ASA, specializes in constructing commercial vessels operating along the U.S. mainland coast under the Jones Act.
Hanwha Group expects to enter the U.S. commercial and defense shipbuilding market through this acquisition. Hanwha Systems believes cooperation is possible in developing civilian ships capable of autonomous navigation. It is expected to create synergies with various ship lineups based on marine system technologies such as the ECS (Integrated Control Device), IAS (Ship Automatic Control System), and smart ship solutions related to ship and ship systems.
Hanwha Ocean plans to diversify its sales by securing overseas production bases. Philly Shipyard intends to expand its orders in the medium-sized oil tanker and container ship sectors, where it has strengths, to increase its market presence. Hanwha Ocean plans to effectively incorporate its eco-friendly ship technology, smart ship technology, and smart yard technology into Philly Shipyard.
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