Following the news that South Korea’s Hanwha Group has agreed to acquire 49.3% stake in Daewoo Shipbuilding & Marine Engineering for $1.4 billion;

Rouble Sharma, Defense Analyst at GlobalData, a leading data and analytics company, offers her view:

“South Korea has developed a robust export-oriented defense industrial complex, which not only meets domestic defense requirements but also caters to the global defense equipment market. The country has exported defense equipment to several countries including the UK, India, Iraq, the Philippines, Peru, and Thailand, which has allowed the country’s defense industry to earn valuable foreign exchange and build confidence.

“The deal will allow Hanwha to expand its portfolio and offer a wider range of competitive products in the international market. It is anticipated to significantly support South Korea’s ambition to be one of the top five defense-exporting countries.

“GlobalData estimates Hanwa to cumulatively bag contracts worth more than $5.6 billion between 2022 and 2032 for various categories of artillery, military land vehicles, UGVs and underwater warfare. If the Hanwha and Daewoo Shipbuilding & Marine Engineering deal moves forward without issue, it is anticipated to bring the KDX-IV destroyers’ program under Hanwha’s ambit and will enable it to become a key player in the South Korean defense industry.”