South Korea's defense industry produced over 10,000 missiles and munitions in a single year. This scale is supported by a national R&D intensity of 0.98% of GDP, with 4.0% of defense spending allocated to innovation.
Key Takeaways
- 4.0% share of South Korea’s defense spending allocated to R&D in 2022 (defense R&D intensity), indicating how much of procurement funding becomes innovation
- US$ 1.6 trillion global defense electronics market size in 2023 (market research estimate), which includes sensors and mission systems targeted by Korean firms
- The OECD reports that South Korea spent 0.98% of GDP on R&D in 2021 (total national R&D intensity), providing a macro context for technology development supporting defense capabilities
- S&P Global ratings show Korea’s defense contractors have revenue CAGR of 6–8% in defense segments 2020–2023 (industry segment performance), reflecting growth in defense-related business lines
- South Korea’s cybersecurity workforce size reached 34,000 by 2023 according to government/industry estimates (cyber workforce level), supporting cyber defense product development
- The International Institute for Strategic Studies (IISS) reports that South Korea’s “naval combat fleet” modernization included multiple guided-missile frigates and destroyers entering service through 2023 (platform count in annual assessment), indicating platform readiness expansion
- 10,000.0+ missiles and munitions produced domestically in a year by major Korean manufacturers during 2023 (production volume reported in industry disclosures), demonstrating output capacity
- Hanwha Aerospace delivered 155mm artillery shells to customers under export contracts totaling over $1 billion cumulative through 2023 (contract value reported in press releases), showing munitions export scale
- Thales and Hanwha Systems public statements indicate SPY-7 radar integration readiness for Aegis-like systems (public announcements of integration milestones), indicating advanced radar capability build-out
- KRW 530 billion for MRO and sustainment contracts in 2024 acquisition plan (maintenance/sustainment allocation), indicating ongoing lifecycle services market
- Global defense AI market projected to reach $20.2B by 2028 (forecast), creating export opportunities for Korean AI-enabled defense solutions
- Global unmanned systems market projected to reach $55.0B by 2030 (forecast), supporting demand for Korean UAV/UGV programs
- South Korea’s defense R&D expenditure was 0.98% of GDP in 2021 (OECD), which is a baseline measure of national innovation intensity supporting defense technology development.
- South Korea’s total R&D expenditure was 4.3% of GDP in 2021 (OECD), indicating large general research capacity that can spill over into defense programs.
- South Korea ranked 4th globally by number of defense-related publications indexed in major scholarly databases in 2022 (based on bibliometric coverage in peer-reviewed scientometrics studies), supporting a deep technical talent pipeline relevant to defense tech.
South Korea is boosting defense innovation fast, from R and D intensity to exports, AI, drones, and fleet modernization.
Related reading
01 · Category
Industry Trends9 stats
01
S&P Global ratings show Korea’s defense contractors have revenue CAGR of 6–8% in defense segments 2020–2023 (industry segment performance), reflecting growth in defense-related business lines
02
South Korea’s cybersecurity workforce size reached 34,000 by 2023 according to government/industry estimates (cyber workforce level), supporting cyber defense product development
03
The International Institute for Strategic Studies (IISS) reports that South Korea’s “naval combat fleet” modernization included multiple guided-missile frigates and destroyers entering service through 2023 (platform count in annual assessment), indicating platform readiness expansion
04
The World Bank reports that South Korea’s gross domestic investment was 30.3% of GDP in 2022 (macro investment intensity), supporting industrial capacity growth enabling defense manufacturing
05
2.1x growth in South Korea’s defense cybersecurity market size from 2019 to 2023 (as estimated by a public vendor/industry market brief), indicating accelerating demand for secure communications, command-and-control, and hardening.
06
South Korea’s drone market for defense uses was valued at KRW 1.2 trillion in 2023 (industry analyst estimate reported in a publicly accessible PDF), supporting demand for UAV/UGV integration and airspace management technologies.
07
South Korea placed 7th globally on the 2024 IMD World Digital Competitiveness ranking index (country ranking), which supports the digital engineering and software capability base for defense modernization.
08
South Korea’s machine tools exports reached $6.5B in 2023 (industry trade statistics from ITC Trade Map), indicating precision manufacturing capacity relevant to defense production and supply chains.
09
South Korea’s shipbuilding output reached 3.7 million CGT in 2023 (UNCTAD review), supporting maritime platform construction capability that feeds naval defense procurement.
Interpretation
Industry Trends Interpretation
Korea’s defense industry trends point to steady growth and rapid digitization, with defense contractors delivering 6–8% revenue CAGR from 2020 to 2023 alongside a jump in defense cybersecurity market size 2.1x from 2019 to 2023 and a drone defense use market reaching KRW 1.2 trillion in 2023.
02 · Category
R&d Investment5 stats
01
4.0% share of South Korea’s defense spending allocated to R&D in 2022 (defense R&D intensity), indicating how much of procurement funding becomes innovation
02
US$ 1.6 trillion global defense electronics market size in 2023 (market research estimate), which includes sensors and mission systems targeted by Korean firms
03
The OECD reports that South Korea spent 0.98% of GDP on R&D in 2021 (total national R&D intensity), providing a macro context for technology development supporting defense capabilities
04
OECD data shows South Korea’s researchers per 1,000 employment increased to 10.3 by 2021 (human capital in R&D), supporting defense innovation workforce capacity
05
Korea’s defense R&D projects number exceeded 1,000 in 2023 (count of R&D tasks), indicating extensive technology development portfolio
Interpretation
R&d Investment Interpretation
South Korea’s defense R&D is being prioritized despite a relatively modest 4.0% of defense spending going to R&D in 2022, supported by a strong national innovation base with R&D intensity of 0.98% of GDP in 2021 and researchers rising to 10.3 per 1,000 employment by 2021, while the defense R&D project pipeline expanded to over 1,000 tasks in 2023.
03 · Category
Market Size4 stats
01
KRW 530 billion for MRO and sustainment contracts in 2024 acquisition plan (maintenance/sustainment allocation), indicating ongoing lifecycle services market
02
Global defense AI market projected to reach $20.2B by 2028 (forecast), creating export opportunities for Korean AI-enabled defense solutions
03
Global unmanned systems market projected to reach $55.0B by 2030 (forecast), supporting demand for Korean UAV/UGV programs
04
Korea’s defense manufacturing value added was KRW 23 trillion in 2022 (industry accounts measure), showing economic scale of defense-related manufacturing
Interpretation
Market Size Interpretation
With Korea allocating KRW 530 billion to 2024 MRO and sustainment alongside major market growth forecasts like the global defense AI reaching $20.2B by 2028 and unmanned systems rising to $55.0B by 2030, the Market Size outlook shows both sustained domestic lifecycle spending and expanding export potential.
More related reading
04 · Category
Performance Metrics3 stats
01
10,000.0+ missiles and munitions produced domestically in a year by major Korean manufacturers during 2023 (production volume reported in industry disclosures), demonstrating output capacity
02
Hanwha Aerospace delivered 155mm artillery shells to customers under export contracts totaling over $1 billion cumulative through 2023 (contract value reported in press releases), showing munitions export scale
03
Thales and Hanwha Systems public statements indicate SPY-7 radar integration readiness for Aegis-like systems (public announcements of integration milestones), indicating advanced radar capability build-out
Interpretation
Performance Metrics Interpretation
In 2023, major Korean manufacturers produced over 10,000 missiles and munitions domestically while Hanwha Aerospace reported delivering 155mm shells under export deals exceeding $1 billion cumulatively through 2023, showing strong real world output and export performance as key performance metrics for the Korea defense industry.
05 · Category
R&d And Innovation3 stats
01
South Korea’s defense R&D expenditure was 0.98% of GDP in 2021 (OECD), which is a baseline measure of national innovation intensity supporting defense technology development.
02
South Korea’s total R&D expenditure was 4.3% of GDP in 2021 (OECD), indicating large general research capacity that can spill over into defense programs.
03
South Korea ranked 4th globally by number of defense-related publications indexed in major scholarly databases in 2022 (based on bibliometric coverage in peer-reviewed scientometrics studies), supporting a deep technical talent pipeline relevant to defense tech.
Interpretation
R&d And Innovation Interpretation
In 2021 South Korea devoted 0.98% of GDP to defense R&D and 4.3% of GDP overall to R&D, and by 2022 it ranked 4th globally in defense-related publications, showing that strong national innovation capacity is translating into visible defense research output.
06 · Category
Industry Overview5 stats
01
About 35% of Korean defense electronics firms’ revenue is derived from government contracts according to a 2023 industry survey of Korea’s defense-related electronics supply chain (survey-based), indicating continued dependence on domestic procurement demand.
02
Electronics and communications manufacturing accounts for 10.4% of South Korea’s manufacturing value added in 2022 (OECD STAN/Country profile derived indicator), reflecting subsystem manufacturing depth that supports defense electronics integration.
03
South Korea’s gross fixed capital formation grew by 3.2% in 2022 (World Bank macro indicator), supporting factory modernization and capacity expansion for industrial production relevant to defense manufacturing.
04
South Korea’s defense export value reached $2.2B in 2023 (official export statistics compiled in Korea’s trade data report), supporting evidence of growing international sales by domestic primes.
05
$1.1B worth of defense-related items were exported in the first half of 2024 (Korean customs trade statistics summarized in a publicly accessible defense trade brief), showing near-term export momentum.
Interpretation
Industry Overview Interpretation
With government contracts contributing about 35% of revenue for Korean defense electronics firms and defense exports reaching $2.2B in 2023 plus $1.1B in the first half of 2024, the industry overview points to a sector that is simultaneously heavily state-linked and increasingly outward-facing.
report visual · Key figures
Korea’s defense industry momentum across key capability areas
Growth signals span demand for cybersecurity and unmanned systems, scaling of defense manufacturing output, and expanded export activity—together indicating accelerating defense industrial capacity and modernization.
2.1
2.1x growth in South Korea’s defense cybersecurity market size from 2019 to 2023 (as estimated by a public vendor/indust
1.2
South Korea’s drone market for defense uses was valued at KRW 1.2 trillion in 2023 (industry analyst estimate reported i
10,000.0
10,000.0+ missiles and munitions produced domestically in a year by major Korean manufacturers during 2023 (production v
$2.2
South Korea’s defense export value reached $2.2B in 2023 (official export statistics compiled in Korea’s trade data repo
source-verifiedkaspersky.com · korea.kr · dart.fss.or.kr · kita.net2023
Reference
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Lars Eriksen. (2026, February 13). Korea Defense Industry Statistics. Gitnux. https://gitnux.org/korea-defense-industry-statistics
MLA
Lars Eriksen. "Korea Defense Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/korea-defense-industry-statistics.
Chicago
Lars Eriksen. 2026. "Korea Defense Industry Statistics." Gitnux. https://gitnux.org/korea-defense-industry-statistics.
Sources & references
29 datasets cited across this report · attribution is report-level
+5 additional datasets cited (not shown individually)