SEOUL: The global arms markets have restored their vigor lost in the aftermath of the 2008 global financial crisis, but Korea’s defense industry is struggling at home and abroad, industry sources said Monday. They cite two reasons for the Korean industry’s slump: the rapid shrinkage of the domestic market as the result of the widespread corruption and stepped-up investigations by the prosecution, and the government’s inconsistent policies as well as its excessive regulations on supply prices.
According to the Defense Acquisition Program Administration, Korea’s arms exports remained at $3.49 billion last year, down 3.4 percent from $3.61 billion in 2014. This is in contrast to international trends because global arms trade volume increased 11 percent to $65 billion over the cited period, DAPA officials said.
The growth in global weapons trade volume was the biggest since 2008, HIS, an international consulting firm, also said. “Rich countries in the Middle East, including Saudi Arabia, have sharply increased their arms imports to enhance national defense, prolonging the boom in global industry through the first half of this year,” the industry sources said.
