Domestic defense exports take a steady step, 10 promising countries need differentiation strategies

[뉴스토마토 조용훈 기자] The opinion of a national research institute that the domestic defense industry should be used as a driving force for national economic development in the post-corona era came out. The defense industry was presented as a new growth engine in a situation where the domestic economy contracted due to Corona 19 in the past year and the domestic manufacturing industry experienced worsened due to rising raw material prices.

According to the report ‘2020 KIET Top 10 Promising Countries for Defense Exports’ released by the Korea Institute of Industry (KIET) on the 7th, the government has newly enacted the Defense Industry Development and Support Act (Defense Industry Development Act) to foster the domestic defense industry. Although efforts were made, such as establishing a new office in charge of defense in the Office of the Defense Reform Secretary at the Blue House, the proportion of exports to the domestic defense industry output was found to be only 15%.

KIET analyzed that domestic defense export orders, which had recorded more than $3.5 billion in 2013-2015, have stagnated at the level of $3 billion in the last five years (2016-2020).

Domestic defense exports and orders trend (2012~2020). Table/Industrial Research Institute (KIET).

In particular, due to the aftermath of Corona 19, defense budgets are decreasing in most countries, and Korea’s major defense export markets, middle and late-coming countries, are also expected to allocate budgets for corona response welfare and revitalization of the domestic economy. It was expected.

KIET suggested that in order for the domestic defense industry to gain an edge in the competition with global defense companies, a clear target market selection strategy is needed.

In the report, the top 3-4 countries in the world’s defense budget, such as India and Saudi Arabia, and Australia, Poland, and Colombia are listed as promising countries for defense export over the next five years (2020-2024).

First of all, it was analyzed that advanced countries such as Australia with high industrial maturity have a large budget for obtaining weapons, and they highly value technology and quality competitiveness that can meet the required performance. On the other hand, Nordic countries such as Norway, which have high industrial maturity but lack the budget to acquire weapons, are highly interested in economic acquisition methods of weapons systems, so it was evaluated that it is necessary to introduce new types of export methods such as used equipment, parts exports, and leases rather than direct export of existing finished products .

Late-developed countries such as Indonesia and Colombia, which have a low weapon acquisition budget and low industrial maturity, secure price competitiveness first, provide financial support for consumers to compensate, and industrial cooperation measures to increase the industrial maturity of the private sector of the country in the form of a package. Offered to present. In addition, India and Saudi Arabia saw that there is a need for a strategic approach to pursue shared growth in the country’s defense industry through technology transfer, local production, joint development, and the purchase of defense products in Korea such as local employment.

In addition, the report suggested that it is also necessary to find an integrated export strategy through the uniting of capabilities at the level of the government in order to respond to the market attack of advanced US and European companies amid the rapidly changing defense export environment.

Sejong = Reporter Cho Yong-hoon [email protected]

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