South Korea allocated 56.6 trillion KRW to defense spending in 2023, up 4.6 percent from the prior year and equivalent to 2.8 percent of GDP. R&D funding reached 5.1 trillion KRW, while procurement totaled 25.8 trillion KRW with a focus on advanced weapon systems. Defense exports rose to 17.3 billion dollars in 2023, driven by major tank and howitzer orders in Europe.
Key Takeaways
- In 2023, South Korea's total defense budget allocated 56.6 trillion KRW, representing 2.8% of GDP and a 4.6% increase from 2022
- In 2023, South Korea exported $17.3 billion worth of defense products, ranking 8th globally
- In 2023, South Korea produced 260 units of K9 Thunder self-propelled howitzers
- In 2023, R&D investment in defense reached 5.1 trillion KRW with 12,000 researchers
- Total defense industry workforce exceeded 80,000 employees in 2023
Korea’s defense industry posted steady gains, signaling stronger momentum across production and exports.
Related reading
01 · Category
Budget And Expenditure20 stats
01
In 2023, South Korea's total defense budget allocated 56.6 trillion KRW, representing 2.8% of GDP and a 4.6% increase from 2022
02
R&D budget within defense spending in 2023 was 5.1 trillion KRW, accounting for 9% of the total defense budget
03
Procurement budget for 2023 stood at 25.8 trillion KRW, focusing on advanced weaponry systems
04
In 2022, operational maintenance costs consumed 24.2 trillion KRW of the defense budget
05
Personnel costs in the 2023 defense budget amounted to 21.7 trillion KRW, supporting 500,000 active personnel
06
Defense budget growth rate from 2018 to 2023 averaged 5.2% annually in real terms
07
In 2024, proposed defense budget is 60.2 trillion KRW, with emphasis on missile defense systems
08
Share of defense budget from GDP peaked at 2.9% in 2023 due to North Korean threats
09
Infrastructure investment in defense budget 2023 was 2.9 trillion KRW for base upgrades
10
Fuel and logistics expenditure reached 3.4 trillion KRW in 2023
11
Training budget allocation in 2023 was 1.8 trillion KRW for joint exercises
12
Pension and welfare costs for military retirees hit 4.2 trillion KRW in 2023
13
Cyber defense funding increased to 1.2 trillion KRW in 2023 budget
14
Space defense R&D allocation was 0.8 trillion KRW in 2023
15
Munitions procurement budget surged 15% to 4.5 trillion KRW in 2023
16
Naval forces budget share was 18% of total in 2023 at 10.2 trillion KRW
17
Air force allocation 22% or 12.5 trillion KRW in 2023 budget
18
Army budget dominated at 40% or 22.6 trillion KRW in 2023
19
Missile defense systems funding reached 3.1 trillion KRW in 2023
20
International cooperation budget was 0.5 trillion KRW for joint development in 2023
Interpretation
Budget And Expenditure Interpretation
South Korea is steadily ramping up defense capability, with the 2023 budget rising 4.6% to 56.6 trillion KRW and the missile defense effort alone reaching 3.1 trillion KRW, reflecting a clear shift toward advanced, threat-driven spending.
02 · Category
Exports And Sales18 stats
01
In 2023, South Korea exported $17.3 billion worth of defense products, ranking 8th globally
02
K9 Thunder howitzers exported to 9 countries totaling 1,700 units by 2023 valued at $3.5 billion
03
Poland signed $14.7 billion deal for 980 K2 tanks and 672 K9 howitzers in 2022-2023
04
Australia procured 30 K9 howitzers for $800 million in 2021 with options for more
05
Philippines bought 12 FA-50 light combat aircraft for $350 million in 2023
06
Indonesia ordered 48 KF-21 fighters in $7.6 billion deal announced 2023
07
UAE purchased 51 K9 howitzers and 24 K10 ammo resupply vehicles for $1.2 billion
08
Defense exports to Europe surged 500% to $5.8 billion in 2023
09
Peru acquired 32 FA-50 fighters cumulatively by 2023 for $400 million
10
Saudi Arabia deal for K9 howitzers worth $500 million signed 2023
11
Total defense export contracts signed in 2023 reached $24 billion
12
India imported Biho anti-air systems worth $200 million in 2023
13
Norway selected K9 for $1.2 billion procurement in 2023
14
Egypt ordered 200 K9 howitzers for $1.5 billion in 2023 talks
15
Defense exports growth rate 77% year-on-year to $17.3 billion in 2023
16
K239 Chunmoo exported to UAE in $3 billion deal 2023
17
Romania signed for 54 K9 howitzers and 36 K10 vehicles $700 million 2023
18
Defense exports to Middle East accounted for 25% of total in 2023
Interpretation
Exports And Sales Interpretation
Korean defense exports surged to $17.3 billion in 2023, up 77% year on year, driven by major orders that include the $14.7 billion Poland tank and howitzer deal and growing momentum across Europe where exports jumped 500% to $5.8 billion.
03 · Category
Production And Procurement18 stats
01
In 2023, South Korea produced 260 units of K9 Thunder self-propelled howitzers
02
Hyundai Rotem delivered 234 K2 Black Panther tanks to the ROK Army in 2022-2023
03
KAI manufactured 20 KF-21 Boramae fighter jets prototypes by end of 2023
04
LIG Nex1 produced 1,200 Cheongung-II (M-SAM) missiles in 2023
05
Hanwha Ocean built 2 Dokdo-class amphibious assault ships between 2020-2023
06
Total domestic procurement rate for defense equipment reached 78% in 2023
07
150 units of K21 armored vehicles were procured by Army in 2023
08
Doosan DST supplied 500 Biho-II anti-aircraft systems components in 2023
09
Samsung Techwin (now Hanwha) produced 300 K200A1 APCs in 2022
10
Production capacity for K9 howitzers expanded to 400 units annually by 2024
11
ROK Navy commissioned 3rd KSS-III Batch-II submarine in 2023, weighing 3,000 tons
12
Hanwha Systems delivered 50 AN/TPQ-78 radars to US in 2023 under procurement deal
13
Total value of domestic defense production hit 20.1 trillion KRW in 2023
14
80% of ROK Army's artillery is domestically produced as of 2023
15
Production of Chunmoo multiple rocket launchers reached 100 units in 2023
16
KAI assembled 12 T-50 advanced trainers for export in 2023
17
Poongsan Corporation manufactured 2 million 155mm artillery shells in 2023
18
Total procurement contracts awarded domestically valued 15 trillion KRW in 2023
Interpretation
Production And Procurement Interpretation
In 2023 South Korea pushed deeper into self-reliance with 78 percent domestic procurement alongside major output milestones such as producing 1,200 Cheongung-II missiles and 260 K9 Thunder howitzers while expanding K9 capacity to 400 units annually by 2024.
More related reading
04 · Category
R&d And Technology19 stats
01
In 2023, R&D investment in defense reached 5.1 trillion KRW with 12,000 researchers
02
KF-21 Boramae fighter development cost 8.9 trillion KRW by 2023 phase
03
LIG Nex1 developed indigenous AESA radar for KF-21 completed 2023
04
KSS-III submarine with lithium-ion batteries R&D finalized 2023
05
Hanwha Systems invested 500 billion KRW in AI-based defense tech 2023
06
DTAQ certified 150 new defense technologies in 2023
07
Development of hypersonic missile Hyunmoo-5 began with 1 trillion KRW budget 2023
08
KAI's KUS-FS stealth UAV first flight achieved 2023
09
4th gen submarine AIP system R&D success rate 95% in 2023 tests
10
Laser weapon system Golden Eagle prototype tested 2023 by Hanwha
11
National Defense Science Institute (ADD) filed 2,500 patents in 2023
12
Quantum encryption tech for military comms developed 2023
13
Next-gen destroyer Sejong the Great R&D allocation 2 trillion KRW 2023
14
Biho-III upgraded with IRST sensor R&D completed 2023
15
Space-based surveillance satellite R&D launched 2023 with 300 billion KRW
16
Autonomous underwater vehicle (AUV) tech for mine warfare ready 2023
17
6G military network R&D partnership with Samsung 2023
18
Directed energy weapons R&D budget 200 billion KRW in 2023
19
Cyber warfare simulation platform developed by ADD in 2023
Interpretation
R&d And Technology Interpretation
In 2023, Korea pushed defense innovation across the board, spending 5.1 trillion KRW on R&D and backing a wide pipeline from the 8.9 trillion KRW KF-21 program to multiple advanced projects like 300 billion KRW for space surveillance, 200 billion KRW for directed energy weapons, and 150 certified new defense technologies.
05 · Category
Workforce And Infrastructure18 stats
01
Total defense industry workforce exceeded 80,000 employees in 2023
02
Hanwha Defense employed 15,000 workers in defense sector 2023
03
KAI had 5,200 engineers specialized in aerospace 2023
04
Defense R&D personnel numbered 25,000 across industry in 2023
05
Hyundai Rotem defense division workforce 4,500 in 2023
06
LIG Nex1 employed 7,000 with 40% in R&D 2023
07
Average salary in defense industry 85 million KRW annually 2023
08
10 new defense industrial complexes established 2018-2023
09
Changwon defense cluster hosts 300 companies employing 30,000
10
Vocational training programs trained 5,000 workers in 2023
11
Female workforce in defense industry reached 18% or 14,400 in 2023
12
Defense export support staff increased 20% to 2,000 in 2023
13
Jinhae naval base infrastructure expanded for 2 new shipyards 2023
14
Sacheon aerospace cluster employs 20,000 with KAI hub
15
Annual turnover rate in defense manufacturing 4.2% in 2023
16
50,000 indirect jobs created by defense exports in 2023
17
Busan shipbuilding yard capacity for 4 destroyers annually upgraded 2023
18
Defense industry union membership 40,000 members 2023
Interpretation
Workforce And Infrastructure Interpretation
In 2023, South Korea’s defense industry sustained strong growth and capacity with workforce expanding beyond 80,000 employees and deepening specialization, including 25,000 defense R and D personnel and an 18% female share, while exports alone supported 50,000 indirect jobs.
Reference
Cite This Report
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APA
Priyanka Sharma. (2026, February 13). Korean Defense Industry Statistics. Gitnux. https://gitnux.org/korean-defense-industry-statistics
MLA
Priyanka Sharma. "Korean Defense Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/korean-defense-industry-statistics.
Chicago
Priyanka Sharma. 2026. "Korean Defense Industry Statistics." Gitnux. https://gitnux.org/korean-defense-industry-statistics.
Sources & references
22 datasets cited across this report · attribution is report-level