Korea's defense industry is knocking on the European air defense network market with surface-to-air guided missiles and counter-drone systems at the forefront. Korea's major defense corporations will target the European defense market by showcasing flagship weapons at the International Defence Industry Exhibition (MSPO), which opens in Poland on the 8th (local time). Expectations are high in the domestic defense industry as Hanwha Aerospace(012450) recently signed a K9 self-propelled howitzer export contract with Spanish defense company Indra Sistemas, estimated at 1 trillion won.
At MSPO in 2022, Korean corporations led with the K2 tank, the K9 self-propelled howitzer, and the FA-50 light attack aircraft. Since 2023, they have highlighted the Jangbogo-class submarine, aiming at Poland's Orca submarine project. This year's focus is "Korean air-defense weapons systems."
MSPO runs from today through the 11th in Kielce, a city in central Poland. Launched in 1993, MSPO is considered one of Europe's three major defense exhibitions along with France's Eurosatory and Britain's DSEI. Organizers projected participation by more than 800 corporations from 35 countries and 40,000 visitors this year.
LIG Defense&Aerospace(079550)(LIG D&A) returns to MSPO this year. It will put front and center the Cheongung-II medium-range surface-to-air guided missile, which gained popularity in the Middle East, and the L-SAM long-range surface-to-air guided missile. These are core weapons systems of Korea's layered air defense network.
LIG D&A is preparing a proposal for Poland's layered air defense network project. Cheongung-II and L-SAM will cover medium and long ranges, while a short-range surface-to-air guided missile being co-developed with Germany's Rheinmetall will handle short range. The short-range surface-to-air guided missile will be displayed at Rheinmetall's booth during MSPO. LIG D&A signed a strategic memorandum of understanding (MOU) with Rheinmetall at France's Eurosatory exhibition in June.
LIG D&A will also exhibit the Korean GPS-guided bomb (KGGB). The KGGB is an air-to-ground guided weapon equipped with a global positioning system (GPS) that can be dropped precisely on a desired point. The KGGB is mounted on the FA-50 light attack aircraft developed by Korea Aerospace Industries (KAI), and Poland is an FA-50 buyer.
Industry watchers say that if LIG D&A achieves results in Poland, demand could spread to neighboring countries. The Czech Republic in Eastern Europe is also said to be showing interest in Korean air defense networks. The Minister of the Ministry of National Defense of the Czech Republic plans to visit Korea on the occasion of the Seoul Defense Dialogue and tour an LIG D&A establishment. A LIG D&A official said, "We will aggressively pursue sales activities to enter the European and global markets."
Hanwha Group also put weight on air defense networks. Hanwha Aerospace and Hanwha Systems(272210) set up an integrated booth spanning 274㎡. Alongside L-SAM, they are unveiling the H-SHORAD short-range air defense system and H-SHIELD. H-SHORAD mounts a cannon and guided missiles on a wheeled armored vehicle to intercept fighter jets, helicopters, and anti-tank missiles, serving as a weapons system. H-SHIELD detects and identifies drones and small aircraft to neutralize them. In the counter-drone field, there is also Hanwha Systems' Cheongwang laser air-defense weapon, which intercepts drones with a laser.
Hanwha Aerospace will also showcase unmanned weapons systems. The concept links Poland's K9A1 self-propelled howitzers with unmanned amphibious multiple rocket launchers and unmanned ground vehicles. While the manned self-propelled howitzers provide fire support, unmanned systems conduct reconnaissance and maneuver. While aimed at Poland's unmanned program, the key is Romania, according to industry views. Romania is pursuing an unmanned ground vehicle program.
Hanwha Aerospace is also eyeing a third K9 self-propelled howitzer contract. Hanwha Aerospace disclosed on the 31st of last month that it had signed an export contract for K9 self-propelled howitzers with Spain's Indra Sistemas. The contract amount was not disclosed, but it is estimated at around 1 trillion won. On the 18th of last month, Hanwha Aerospace broke into the U.S. with the K9 self-propelled howitzer and then achieved its first export to Western Europe.
Hyundai Rotem(064350) will unveil a mock-up (display model) of the K2 tank for Poland (K2PL) fitted with a layered protection system, including a counter-drone jammer and an active protection system (APS). The goal is to demonstrate that various counter-drone defense systems can be mounted on the K2PL. Hyundai Rotem is increasing the localization rate of the APS and developing it to block even anti-tank high-explosive rounds and respond to small drones and loitering munitions.
Across Europe, including Poland, moves to localize weapons production are gaining strength. Local Polish corporations have also jumped aggressively into the defense market. Hundreds of companies from Poland alone will participate in this year's MSPO.
An official in the domestic defense industry said, "The increased participation of companies from Poland and neighboring countries is, in one sense, an opportunity for us." That is because it could be a chance to expand cooperation with local corporations. The official said, "If Korean corporations that have been laying production bases locally are tied together with these companies through parts supply and joint production, a structure will be created that allows us to move together even under Europe-first policies."