Korean Defense Policy under Korean President Moon Jae-in’s Administration

Because of the recent tensions on the Korean peninsula, caused by the actions of the Kim Regime in the North of the Korean Peninsular, the Korean government under the President Jae-in Moon Administration has vowed to, among other things, increase the defense budget and enhance the 3-Axis System.  Opportunities, thus, abound for proactive companies in the defense industry.

Korea Defense Industry

Korea’s Major Defense Priorities

  1. Increase the Korean defense budget from 2.4% to around 3.0% of GDP;
  2. Maintain the strong relationship with the United States;
  3. Procure advance weapon systems domestically and from abroad;
  4. Enhance and further develop the 3-Axis System;
  5. Expedite the takeover of wartime control of the Korean military (and all troops in Korea) to the Korean military; and
  6. Expedite the procurement and build out of purchased and in development defense systems.

3-Axis System
The understanding of the 3-Axis System and the major specific priorities of the Korean Administration demonstrates the opportunities for defense companies.

The 3-Axis System is, in short,:

  • An Early Detection System and Quick Strike Capabilities (“Kill Chain”);
  • “Korea Air & Missile Defense (KAMD”) which consists of, among other things, the defense of key assets; and
  • Korea Massive Punishment & Retaliation (KMPR) which is self explanatory.

The 3-Axis System coupled with the other priorities of the Moon Administration shall increase opportunities for proactive international defense companies with advance systems and technologies.  Because of the immediate needs, we shall, likely, see more purchases of one-off systems and integrated technologies from non-Korean companies.  We may see some of the long-term development programs being put on hold or abandoned, because of these immediate needs.

IPG represents leading U.S. and European defense companies selling into the Korean market.  To learn what IPG can do for you, please contact us.

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