South Korea emerges as major beneficiary of shifts in global arms market

Uncertainty in the global arms market, driven by the United States reassessing its relationships with allies and a broad rearmament drive across many countries, is creating major commercial opportunities for South Korea. According to an analysis published by Politico, Seoul has become the world’s fastest-growing supplier of military equipment.

The report said that large-scale conflicts around the world have created urgent demand for weapons as countries seek both to support allies and strengthen their own defenses against potential future confrontations. At the same time, changes in the US role within the global arms market have opened new opportunities for South Korean manufacturers. Statements and policy decisions by US President Donald Trump regarding NATO have led allies to question Washington’s reliability in times of crisis, increasing uncertainty across the global market. In addition, the diversion of a large share of US weapons supplies to the Middle East because of ongoing conflicts has placed further strain on already overstretched supply chains.

European countries increase purchases from South Korea

Faced with what Politico described as the Trump administration’s more distant approach toward allies, European countries in particular have accelerated arms purchases from South Korea. The publication noted that Seoul’s growing influence as a supplier has been driven largely by major defense contracts signed with Poland.

Following the outbreak of the conflict in Ukraine, several Eastern European capitals, including Warsaw, transferred portions of their military inventories to Kyiv, relying on German support to replenish their arsenals. However, Berlin’s slow pace in replacing allied stockpiles generated frustration across the region.

South Korea emerged as an alternative supplier during this period and became a reliable source of military equipment for Eastern European countries. Poland became Seoul’s largest customer through a $13.7 billion agreement covering the purchase of tanks, rocket launchers, self-propelled howitzers and other military equipment.

“We were originally preparing against North Korea, but now we are ready to provide these solutions to customers around the world,” said Choo Hyung-kim, head of the Security Management Institute, a defense analysis organization affiliated with South Korea’s National Assembly.

Lack of political baggage gives Seoul an advantage

Politico reported that one of the greatest advantages enjoyed by South Korean defense companies is the absence of the “political baggage” associated with major arms exporters such as the United States, China, Russia and Israel.

According to the figures cited, the combined projected revenue of South Korea’s largest defense companies, including Hanwha Group, Hyundai Rotem, LIG Nex1 and Korea Aerospace Industries, is expected to reach approximately $37 billion in 2026. That would represent a fourfold increase from their combined revenues in 2021.

Meanwhile, an official from the office of former South Korean President Yoon Suk-yeol told the Yonhap news agency in 2024 that the scale of any weapons shipments to Ukraine would depend on Russia’s approach to its relationship with North Korea. Seoul later clarified that it had no plans to provide ammunition directly to Ukraine.