Hanwha System has declared its entry into the engagement control system (ECS) market, which is referred to as the brain of the air defense system. Hanwha Aerospace and Hanwha System have previously manufactured missiles and launchers, and now, the Hanwha Group intends to build the entire air defense network, including the ECS.
LIG Nex1, which was responsible for the integration of the ECS and the domestic air defense system, will enter the market for the multi-functional radar (MFR) which is a core business of Hanwha System.
According to the defense industry on the 1st, competition between Hanwha Group and LIG Nex1 is expected to start with the medium-range surface-to-air missile Cheongung (M-SAM) Block III project. Hanwha and LIG Nex1 are participating in this project, and in August, specific companies for items such as launchers and ECS will be determined.
The Cheongung III project aims to create a system that intercepts missiles at altitudes twice as high as the Cheongung II (15-20 km). Approximately 2 trillion won will be invested from development to operationalization in 2035.
The Korean air defense network currently consists of the Cheongung I, II, and systems such as the L-SAM (Long-range Surface-to-Air Missile) I and II, which intercept enemy missiles at higher altitudes. Since the mass production of Cheongung I began and the development of Cheongung II became fully underway in the mid-2010s, LIG Nex1 has handled the ECS and system integration, while Hanwha Aerospace has been responsible for the missiles and launchers. Hanwha System has taken charge of the radar. Until now, the technological development has progressed with distinct areas among the companies.
From the Cheongung III project onward, it seems that these area distinctions will disappear. This project will proceed in the form of item-specific development divided into more than ten parts. Hanwha System will participate in the Cheongung III ECS project. Although LIG Nex1 has not officially revealed it, it is reported that the company expressed willingness to participate in multiple projects, including multi-functional radars.
Hanwha claims that it has sufficient capabilities, having developed an ECS at a higher level than Cheongung, such as the operational center for the Korean missile defense system, and LIG Nex1 also has experience in developing AESA radar.
The reason companies are seeking to expand their business areas is exports. With rising conflicts around the world, the demand for air defense systems is increasing. The U.S. Patriot system, which the Korean military is currently operating, is experiencing a shortage due to soaring demand.
If Hanwha successfully develops the ECS, it will achieve vertical integration from guided missiles to radar and ECS, allowing it to supply air defense systems promptly. Since LIG Nex1 also handled the system integration of air defense systems, it seems to plan to expand its scope to include radars.
Industry insiders believe that fierce competition among defense conglomerates will drive technological advancement. A source in the industry noted, “When there is competition, the pace of technological development accelerates, and costs can be reduced.”
On the other hand, there are concerns about excessive competition. Another defense industry insider remarked, “If competition among companies becomes excessive, like with the Korean destroyers or multi-purpose unmanned vehicle projects, the projects themselves can be delayed, which could disadvantage us in securing overseas contracts. There is a reason why 'Korea One Team' emerged when participating in overseas bidding.”