With the North Atlantic Treaty Organization (NATO) and the European Union (EU) pushing for rearmament, Germany has indicated that it will prioritize delivery speed over the origin of weapons, suggesting prospects for the domestic defense industry. After the Russia-Ukraine war, Europe established a principle of prioritizing the purchase of European-made weapons to bolster defense capabilities, but with projections that Russia may attack Europe sooner rather than later, rapid armament is deemed necessary.
According to Reuters and others on the 19th, Anette Rehniak, Secretary General of the Federal Office of Bundeswehr Equipment, Information Technology and Service (BAAINBw) of Germany, said, "The country from which weapons are purchased depends on who can provide the necessary supplies quickly." Germany, as a NATO member, is pushing for an increase in member states' defense spending from the current level of 2% of GDP to 5%.
There have been many projections that most of the budget allocated for NATO’s rearmament will be distributed to defense companies based in the EU region, such as Germany's Rheinmetall, France's Thales, Italy's Leonardo, and Britain's BAE Systems.
However, with projections that Russia may attack NATO sooner, speed has become crucial. NATO Secretary General Jens Stoltenberg recently noted in a speech at the Royal Institute of International Affairs in the UK that "Russia may be ready to launch a military attack on NATO within five years."
Domestic defense corporations such as Hanwha Aerospace, Hyundai Rotem, Korea Aerospace Industries (KAI), and LIG Nex1 have the advantage of 'On-Time Delivery,' supplying products in a timely manner.
KAI delivered 12 units of the gap filler (GF) version of the FA-50, which was contracted for 48 units with the Polish government, after a year and three months. The quantities of FA-50 produced for delivery to the Air Force were transferred to Poland for export. Deliveries of the FA-50PL are set to start this year and are scheduled to be completed by 2028.
The Polish government, which initially planned to introduce Germany's Leopard 2 tank, opted for Hyundai Rotem's K2 tank and K9 self-propelled howitzer due to delivery delays and maintenance uncertainties. Hyundai Rotem delivered the initial quantities from the first contract, which included the K9 self-propelled howitzer and K2 tank, within two months and plans to complete the remaining deliveries next year.
Norway and Estonia are considering the introduction of Hanwha Aerospace's Cheonmu, as the delivery of the U.S. multiple launch rocket system HIMARS is delayed.
Unlike overseas defense corporations that operate factories when orders come in, Korea has a unique situation due to the confrontation between North and South Korea, resulting in quantities that must be produced each year.
A representative of a defense corporation said, "There is a quantity supplied to the military every year, which allows us to quickly generate additional order quantities," adding that "recently, local production has enabled us to deliver overall more than twice as fast compared to competitors."