South Korea Defence and Security Report Q1 2015

BMI Research
December 3, 2014
87 Pages - SKU: BMI5397817
Countries covered: South Korea

South Korea Defence and Security Report Q1 2015

BMI View: South Korea's defence and security outlook is dominated by the unpredictable and tenserelationship with Pyongyang. Uncertainty drives defence spending increases and technologicaldevelopment, with missile-defence and jet fighters the pre-eminent concerns for Seoul at present. Domesticdefence companies have generally stagnated in 2013 and 2014, with a handful of key civilian ordersproviding a much-needed boon to their finances. Longer-term, we see emerging markets in the Middle Eastand Sub-Saharan Africa as key areas for South Korean defence export growth.

A significant portion of defence expenditure funds are expected to be used to upgrade South Korea's missiledefence system. The Korea Air Missiles Defence system (KAMD), or so called 'kill chain project' will seeSeoul move from its German-made PAC-2 missile system to the PAC-3 system produced by Americancontractor Lockheed Martin. This project is expected to cost the Ministry of National Defence (MND)approximately USD26.4bn by 2019.



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