Future of the South Korean Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024

Table of Contents

1. Introduction

• 1.1. What is this Report About?
• 1.2. Definitions
• 1.3. Summary Methodology
• 1.4. About GlobalData

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities

• 3.1. Current Market Scenario
  • 3.1.1. Primary Threat Perception
  • 3.1.2. Military Doctrine and Strategy
  • 3.1.3. Military Fleet Size
  • 3.1.4. Procurement Programs
  • 3.1.5. Ongoing procurement programs
  • 3.1.6. Future procurement programs
  • 3.1.7. Top Procurement Programs By Value (US$ Million) 2019-2024
  • 3.1.8. Social, Political and Economic Environment and Support for Defense Projects
  • 3.1.9. Political and Strategic Alliances
• 3.2. Defense Market Size Historical and Forecast
  • 3.2.1. South Korean defense expenditure expected to grow significantly over the forecast period
  • 3.2.2. Nuclear threats from North Korea, acquisition of new technology, and reduction in reliance on imports set to drive defense expenditure
  • 3.2.3. Military expenditure as a percentage of GDP is expected to remain at the same level over the forecast period
• 3.3. Analysis of Defense Budget Allocation
  • 3.3.1. Capital expenditure share to increase over the next five years
  • 3.3.2. Capital expenditure is anticipated to grow at a CAGR of 6.19% over the forecast period
  • 3.3.3. Per capita defense expenditure expected to increase over the forecast period
• 3.4. Homeland Security Market Size and Forecast
  • 3.4.1. Homeland security (HLS) expenditure expected to grow steadily over the forecast period
  • 3.4.2. The majority of terror threats are from North Korea
• 3.5. Benchmarking with Key Global Markets
  • 3.5.1. South Korean defense expenditure expected to remain modest compared to leading spenders
  • 3.5.2. South Korea’s military expenditure is limited compared to leading countries worldwide
  • 3.5.3. South Korea allocates a significant percentage of GDP towards defense
• 3.6. Market Opportunities: Key Trends and Growth Stimulators
  • 3.6.1. Top 10 Defense Market Sectors by Value (US$ Million): Projections over 2019-2024
  • 3.6.2. Missile Defense System
  • 3.6.3. Land-based C4ISR
  • 3.6.4. Fighters and Multirole Aircraft

4. Defense Procurement Market Dynamics

• 4.1. Import Market Dynamics
  • 4.1.1. Defense imports expected to decrease over the forecast period
  • 4.1.2. The US dominated South Korean defense imports during the historic period
  • 4.1.3. Aircraft were the major defense imports during 2014-2018
• 4.2. Export Market Dynamics
  • 4.2.1. Defense exports grew considerably during the historic period
  • 4.2.2. Indonesia was the largest importer of South Korean defense equipment during the historic period
  • 4.2.3. Artillery accounted for the majority of defense exports during 2014-2018

5. Industry Dynamics

• 5.1. Five Forces Analysis
  • 5.1.1. Bargaining Power of Supplier: Low to Medium
  • 5.1.2. Bargaining Power of Buyer: Medium to High
  • 5.1.3. Barrier to Entry: Medium
  • 5.1.4. Intensity of Rivalry: Medium
  • 5.1.5. Threat of Substitution: High

6. Market Entry Strategy

• 6.1. Market Regulation
  • 6.1.1. Offset policy aids development of domestic defense industry
  • 6.1.2. 2018 Revision of its Defense Offset Policy:
  • 6.1.3. FDI in the defense sector to become less complicated
• 6.2. Market Entry Route
  • 6.2.1. Budgeting process
  • 6.2.2. Procurement Policy and Process
  • 6.2.3. Technology transfer provides good market entry opportunities
  • 6.2.4. Research and development collaborations offer market access
  • 6.2.5. Joint ventures and licensing agreements open new market entry strategy choices
• 6.3. Key Challenges
  • 6.3.1. Industrial disputes and rigidity of labor market deter investment
  • 6.3.2. Entrenched presence of US defense suppliers curtails market opportunities

7. Competitive Landscape and Strategic Insights

• 7.1. Competitive Landscape Overview
  • 7.1.1. South Korean Market Share Analysis, 2019-2024
• 7.2. Key Public Sector Companies
  • 7.2.1. Korea Aerospace Industries: Overview
  • 7.2.2. Korea Aerospace Industries: Products and Services
  • 7.2.3. Korea Aerospace Industries: Recent Announcements and Strategic Initiatives
  • 7.2.4. Korea Aerospace Industries: Alliances
  • 7.2.5. Korea Aerospace Industries: Recent Contract Wins
  • 7.2.6. Korea Aerospace Industries: Financial Analysis
  • 7.2.7. Hanwha Techwin America: Overview
  • 7.2.8. Hanwha Techwin: Products
  • 7.2.9. Hanwha Techwin America: Recent Announcements and Strategic Initiatives
  • 7.2.10. Hanwha Techwin: Alliances
  • 7.2.11. Hanwha Techwin: Recent Contract Wins
  • 7.2.12. Hanwha Corporation: Overview
  • 7.2.13. Hanwha Corporation: Products
  • 7.2.14. Hanwha Corporation: Recent Announcements and Strategic Initiatives
  • 7.2.15. Hanwha Corporation: Alliances
  • 7.2.16. Hanwha Corporation: Recent Contract Wins
  • 7.2.17. Hanwha Corporation: Financial Analysis
  • 7.2.18. Hyundai Heavy Industries: Overview
  • 7.2.19. Hyundai Heavy Industries: Products
  • 7.2.20. Hyundai Heavy Industries: Recent Announcements and Strategic Initiatives
  • 7.2.21. Hyundai Heavy Industries: Alliances
  • 7.2.22. Hyundai Heavy Industries: Recent Contract Wins
  • 7.2.23. Hyundai Heavy Industries: Financial Analysis
  • 7.2.24. Daewoo Shipbuilding & Marine Engineering: Overview
  • 7.2.25. Daewoo Shipbuilding: Products
  • 7.2.26. Daewoo Shipbuilding & Marine Engineering (DSME): Recent Announcements and Strategic Initiatives
  • 7.2.27. Daewoo Shipbuilding & Marine Engineering: Alliances
  • 7.2.28. Daewoo Shipbuilding & Marine Engineering: Recent Contract Wins
  • 7.2.29. Huneed Technologies: Overview
  • 7.2.30. Huneed Technologies: Products and Services
  • 7.2.31. Huneed Technologies: Recent Announcements and Strategic Initiatives
  • 7.2.32. Huneed Technologies: Alliances
  • 7.2.33. Huneed Technologies: Recent Contract Wins
  • 7.2.34. STX Engine: Overview
  • 7.2.35. STX Engine: Products and Services
  • 7.2.36. STX Engine: Recent Announcements and Strategic Initiatives
  • 7.2.37. STX Engine: Alliances
  • 7.2.38. STX Engine: Recent Contract Wins
  • 7.2.39. STX Engine: Financial Analysis
  • 7.2.40. S&T Dynamics: Overview
  • 7.2.41. S&T Dynamics: Products
  • 7.2.42. S&T Dynamics: Recent Announcements and Strategic Initiatives
  • 7.2.43. S&T Dynamics: Recent Contract Wins
  • 7.2.44. S&T Dynamics: Financial Analysis
  • 7.2.45. Poongsan Corporation: Overview
  • 7.2.46. Poongsan: Products
  • 7.2.47. Poongsan Corporation: Recent Announcements and Strategic Initiatives
  • 7.2.48. Poongsan Corporation: Alliances
  • 7.2.49. Poongsan Corporation: Recent Contract Wins
  • 7.2.50. Poongsan Corporation: Financial Analysis
• 7.3. Key Private Sector Companies
  • 7.3.1. Samsung Thales: Overview
  • 7.3.2. Samsung Thales: Products and Services
  • 7.3.3. Samsung Thales: Recent Announcements and Strategic Initiatives
  • 7.3.4. Samsung Thales: Alliances
  • 7.3.5. Samsung Thales: Recent Contract Wins
  • 7.3.6. LIG NEX1: Overview
  • 7.3.7. LIG NEX1: Products
  • 7.3.8. LIG NEX1: Recent Announcements and Strategic Initiatives
  • 7.3.9. LIG NEX1: Alliances
  • 7.3.10. LIG NEX1: Recent Contract Wins
  • 7.3.11. Doosan DST: Overview
  • 7.3.12. Doosan DST: Products and Services
  • 7.3.13. Doosan DST: Recent Announcements and Strategic Initiatives
  • 7.3.14. Doosan DST: Recent Contract Wins
• 7.4. Key Foreign Companies
  • 7.4.1. Lockheed Martin Korea: Overview
  • 7.4.2. Lockheed Martin Korea: Products
  • 7.4.3. Lockheed Martin Korea: Recent Announcements and Strategic Initiatives
  • 7.4.4. Lockheed Martin: Alliances
  • 7.4.5. Lockheed Martin: Recent Contract Wins
  • 7.4.6. Lockheed Martin: Financial Analysis

8. Business Environment and Country Risk

• 8.1. Economic Performance
  • 8.1.1. GDP Per Capita
  • 8.1.2. GDP, Current Prices
  • 8.1.3. Export of Goods and Services (LCU Billion)
  • 8.1.4. Import of Goods and Services (LCU Billion)
  • 8.1.5. Gross National Disposable Income (US$ Billion)
  • 8.1.6. Local Currency Unit per US$
  • 8.1.7. Market Capitalization of Listed Companies (US$ Billion)
  • 8.1.8. Market Capitalization of Listed Companies (% GDP)
  • 8.1.9. Government Cash Surplus/Deficit (% of GDP) (LCU)
  • 8.1.10. Goods Exports (% of GDP)
  • 8.1.11. Goods Imports (% of GDP)
  • 8.1.12. Services Imports (% of GDP)
  • 8.1.13. Services Exports (% of GDP)
  • 8.1.14. Foreign Direct Investments
  • 8.1.15. Net Foreign Direct Investments (% of GDP)
  • 8.1.16. Mining, Manufacturing, Utilities Output

9. Appendix

• 9.1. About GlobalData