South Korean defense companies have launched efforts to grab orders in major countries, including the U.S. and Canada, with hopes to expand their overseas presence and contribute to establishing the industry as a next-generation growth engine along with chips and automobiles.

According to multiple sources from the defense industry on Monday, local defense companies have started activity to win global project orders that are expected to come out in two to three years.

Korea Aerospace Industries Ltd. (KAI) has formed a joint team with Lockheed Martin Corp. for the U.S. Navy’s advanced/tactical introduction phase and air force preliminary training aircraft projects, placing the country’s first supersonic advanced training aircraft, T-50, up front.

“T-50 aircraft series are a type that have been developed jointly with Lockheed Martin,” said an unnamed official from KAI.

If KAI secures the contract jointly with Lockheed Martin, it will be the largest-scale defense export in history. T-50 is priced at $20~25 million per unit, which is equivalent to exporting 1,500 compact cars worth 20 million won ($15,329) each.

Korean defense companies are also eying the Canadian Patrol Submarine Project (CPSP) that is expected to be worth up to 80 trillion won. Canada plans to retire old diesel submarines and introduce eight to 12 3,000-ton diesel submarines. Korea is expected to compete with Japanese companies for the deal.

Korean defense companies are also seeking to expand their presence through the British Army’s 2026 Mobile Fires Platform (MFP) program worth 1 trillion won.

“When visiting defense-related exhibitions at home and abroad recently, I was able to feel that the perception of Korean-made weapon systems has become very favorable,” said Kim Min-wook, an official from the Korea Defense Industry Association. “The boom in the defense sector is likely to continue for five to 10 years with the U.S.-China conflict and the aftermath of the Ukraine war.”

Korea, in the meantime, signed a 20 trillion won deal with Poland last year. The Yoon Suk Yeol government expects to win $20 billion worth of defense orders this year, up from $17 billion last year.

Figures, however, show that Korea still lags behind in terms of weapons export market share.

According to the Korea Research Institute for Defense Technology Planning and Advancement, Korea ranks No. 8 in terms of global weapons exports between 2017 and 2021 but its market share is at mere 2.8 percent.

Experts note that Korea should accelerate efforts to advance into the global market to raise its market share.

By Kim Sung-hoon, Lee Jin-han, and Lee Eun-joo

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]