Radar System

South Korean Defense Industry Shines at AUSA 2024

Korea

South Korean defense contractors showcased next-generation land systems and technologies at the 2024 Annual Meeting & Exposition of the Association of the US Army (AUSA), drawing attention to their significant expansion into the US defense market. AUSA, the educational and professional nonprofit organization dedicated to servicemembers and supporters of the US Army, hosted over 33,000 participants and 770 enterprises for its 21st convention from October 14-16 at the Walter E. Washington Convention Center in Washington, DC.

The participating Korean companies formed a “Korea Pavillion,” which saw companies such as SooSung Defense Industries, Taekyung Electronics, Poongsan, and Hanwha Aerospace display cutting-edge products like the K9A2 self-propelled howitzer and a ground uncrewed transport vehicle. These exhibits highlighted South Korea’s advancements in defense innovation and manufacturing at a time of robust bilateral defense cooperation with the US.

South Korea’s Recent Defense Cooperation

South Korean defense companies have become visible at AUSA in recent years, as a part of a strategic push to establish footholds in the US defense market. South Korea’s defense exports have skyrocketed, rising from $2-3 billion before 2020 to $14 billion in 2023. In March 2024, South Korea became the 10th largest exporter of major arms in the world and one of just two Asian countries in the world’s top 25 defense exporters. The Korean defense industry’s expansion has been dubbed “K-Defense,” in line with other popular Korean goods and services such as K-dramas or K-beauty, whose popularity has earned them a global title.

In 2022, South Korean President Yoon Suk Yeol expressed aspirations of making South Korea the fourth largest defense exporter in the world. The expansion of security cooperation ties with Indo-Pacific countries such as Australia and the Philippines, aligns with South Korea’s “Global Pivotal State” foreign policy, through which he seeks to expand South Korea’s international role by increasing economic and military engagements. Following the Russian invasion of Ukraine in 2022, South Korea agreed to transfer 500,000 rounds of 155 mm ammunition to the US and has signed significant sales agreements with Poland and Romania, expanding its defense presence to Eastern Europe and into the arsenals of North Atlantic Treaty Organization (NATO) countries.

K-Defense in the US

Hanwha Defense, a leading South Korean defense corporation and participant at AUSA’s Annual Meetings since 2017, is one of the only Korean defense companies to have established a presence in the US so far. Hanwha Defense USA, the US-based branch of Hanwha Defense, has made it a priority to become a major US supplier of arms and land systems over the next ten years. Hanwha Defense USA is headquartered in McLean, Virginia, a defense and intelligence hub just north of the Pentagon that is home to a robust network of government contractors.

Hanwha Aerospace USA, a subsidiary of Hanwha Defense USA, also established its headquarters in Cheshire, Connecticut in 2023. The company introduced several pipelines for workforce recruitment through partnerships with academic and technical institutions. “We are thrilled that Hanwha is thriving in Connecticut,” said Connecticut Governor Ned Lamont at the company’s launch event for the Connecticut headquarters. Jae-il Son, CEO and President of Hanwha Aerospace made remarks at the same event. “[Hanwha’s] expansion in Connecticut demonstrates our strong relationship with the state and our intention to strengthen these ties,” he said. Hanwha’s Connecticut facility currently employs around 600 people and has pledged over $3 million in sustainable energy and technology investments.

Security Cooperation in US-South Korea Relations

South Korea's establishment of defense industry footholds across the United States, coupled with its ongoing procurement of US defense articles, strengthens the economies of American states. Korea agreed to purchase 25 F-35A Lightning II Joint Strike Fighters in 2023 through the US Defense Department’s Foreign Military Sales process, boosting the economies of Texas and Virginia, two states heavily involved in the manufacturing and assembly of the aircraft. Recent Congressional notification of Korea’s request to purchase 4 Boeing-made E-7 Airborne Early Warning and Control Aircraft will also serve to benefit the aerospace manufacturing industries of Kansas and Washington state if approved.

South Korean companies at AUSA highlighted the growing trend in South Korea’s security cooperation with the US, Eastern Europe, and the Indo-Pacific region. Korean defense contractors such as Hanwha Defense USA contribute to investment and employment in US states as they expand into the US, while South Korea’s consistent purchase of US military equipment ensures that cooperation remains mutually beneficial.

Hanah Park is a Fall 2024 Young Professional at the East-West Center in Washington. Hanah is currently a student at Pomona College studying International Relations.