Invest KOREA

Courtesy of Dasan Machineries]

According to Pulse by Maeil Business News Korea,

The advanced defense industry sector’s attention is increasingly gravitating towards South Korean mid-sized companies, as they continue to garner interest worldwide. While major Korean players like Hanwha Aerospace, Hyundai Rotem, and LIG Nex1 are taking the lead, SMEs are also making waves in the global market with their high-performance and cost-effective products.

Dasan Machineries, which was founded in 1992, is a good example. Roughly 80 percent of its annual revenue is from firearms products, the vast majority of which are exported to over 40 countries, including those in the Middle East, such as Oman, alongside Thailand, Vietnam, and the Philippines. The company offers a range of handgun products, including hammer-fired 9mm and .45 caliber pistols, as well as striker-fired 9mm pistols. Of note among its rifle products is the DSAR-15PQ, designed for special operations.

Dasan Machineries’ firearms are renowned for their durability and are also capable of functioning flawlessly even after firing 15,000 rounds or being submerged in mud, sand, or water. The Ministry of National Defense recently suspended a project to replace the 40-year-old K1A assault rifle used by special forces due to concerns over leaked classified information. But the project is scheduled to resume in the latter half of 2024, with three companies, including Dasan Machineries, expected to compete for the contract.

Korea Defense Industry (KDI), which specializes in missile component production, manufactures rocket projectiles, fuzes/warheads, underwater sensors (radars for locating submarines underwater), and engineering ammunition, among others. Founded in 2020, KDI developed a 230mm rocket projectile system in 2023 and plans to supply it to the South Korean military from the second half of 2024. KDI supplies fuzes for Hanwha Aerospace’s multiple rocket launcher Cheonmu and delivers warhead sections, pressure conversion devices, and fuzes for LIG Nex1’s tactical ship-to-ship missile system.

NEARTHLAB, Contromax, and Lumir, all selected for the “Defense Innovation Enterprise 100” in 2023, are producing innovative products based on advanced technology. The Defense Innovation Enterprise 100 is a program initiated by the Defense Acquisition Program Administration (DAPA) and the Korea Research Institute for Defense Technology Planning and Advancement (KRIT) to support and foster small and medium-sized ventures with excellent technological capabilities in the defense industry. The program has selected 35 companies since it began in 2022 and aims to designate 100 companies by 2026.

NEARTHLAB, which specializes in manufacturing drones for defense and reconnaissance purposes, said global customers are acknowledging its drone hardware production capabilities, which are based on AI-based autonomous flight drone software technology. The company has received procurement meeting proposals from defense companies in Indonesia, Thailand, and the Middle East.

Contromax, which developed an all-in-one electric actuator called Servomax for controlling wing surfaces and propeller tilts of unmanned aerial vehicles, recorded over 3 billion won ($2.2 million) in deliveries to Korean research institutions and aerospace companies, including the Korea Aerospace Research Institute (KARI). The company exported samples to a German defense company for the first time in 2023 that are currently undergoing testing and evaluation for mass production.



By Lee Ho-joon and Minu Kim

Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.

Source: Pulse by Maeil Business News Korea (May 2, 2024)