The unstable security situation in the world is leading to more armaments, as evidenced by data from the Stockholm International Peace Research Institute (SIPRI), with total global military spending reaching USD 2,443 billion in 2023, a real increase of 6.8% compared to 2022 and the steepest annual increase since 2009. South Korea also ranks 10th among the world's largest arms exporters.

The South Korean government aims to become one of the world's top four defence exporters with a global share of over 5% by 2027. South Korea's defence exports reached USD 14 billion in 2023 and are expected to exceed USD 20 billion for the first time this year. The Korean defence industry prides itself on its ability to deliver weapons with excellent cost-effectiveness, in large quantities, in a short period of time. Major export items include: armoured vehicles, tanks, artillery, missiles, aircraft. Leading Korean defence companies include Korea Aerospace Industries (KAI), Korean Air, Hanwha, LIG NEX1, Hyundai Rotem, among others. Local contractors often form consortia to participate in government programs requiring local co-production or joint development. Thus, cooperation with local partners is considered essential for foreign defence contractors to overcome language barriers, network with key decision makers, as well as to gain information about the local market and manage administrative and logistical challenges. The Defence Acquisition Programme Administration (DAPA) is responsible for strengthening national defence capabilities, providing military supplies and supporting the defence industry. It is the central agency for defence procurement.

DX Korea and KADEX were previously combined into one, but this year they were held separately for the first time. DX Korea, with this year's subtitle "New Defense: Shape the Future", attracted a total of 178 companies from 15 countries. KADEX then welcomed 365 companies and there were 1,430 booths on display. In cooperation with the Korea Trade-Investment Promotion Agency (KOTRA) , Czech companies LPP s.r.o. and VR Group, a.s. visited DX Korea. KADEX was visited by, for example, ERA a.s. Ambassador Ivan Jančárek also visited the event. "Supporting our companies in the defence industry in finding opportunities on the Korean market is one of the priorities of our office. I believe that such events will help Czech companies to find partners with whom they can jointly target third markets, " he said.

Further important information on this sector of the Korean market can be obtained from the links below:

1. Defense Acquisition Program Administration: https://www.dapa.go.kr/ 

2. KR Ministry of National Defence: https://www.mnd.go.kr/

3. DX Korea Fair: http://www.dxkorea.org/en/index.asp 

4. KADEX Fair: https://kadexaroka.com/eng/

DX Korea 2024

Interested Czech companies can contact the Commercial Department of the Czech Embassy in Seoul at:  seoul.commerce@mzv.gov.cz.

Jakub Kopecký, head of the Commercial Department, Czech Embassy Seoul