The Korean Defense Industry 2014: Current Status and Policy Implications

Won-Joon Jang (), Hyeok Ki Min () and Young Su An ()
Additional contact information
Won-Joon Jang: Korea Institute for Industrial Economics and Trade, Postal: Sejong National Research Complex, Korea Institute for Industrial Economics and Trade, 370 Sicheong Dae-ro C-dong 8-12F 30147, Republic of Korea, http://www.kiet.re.kr
Hyeok Ki Min: Korea Institute for Industrial Economics and Trade, Postal: Sejong National Research Complex, Korea Institute for Industrial Economics and Trade, 370 Sicheong Dae-ro C-dong 8-12F 30147, Republic of Korea, http://www.kiet.re.kr
Young Su An: Korea Institute for Industrial Economics and Trade, Postal: Sejong National Research Complex, Korea Institute for Industrial Economics and Trade, 370 Sicheong Dae-ro C-dong 8-12F 30147, Republic of Korea, http://www.kiet.re.kr

No 15/2, Occasional Papers from Korea Institute for Industrial Economics and Trade

Abstract: This is the third edition of the KIET Korean defense industry statistics and competitiveness report in 2014. The main purpose of this report is to establish the basis of the Korean defense industrial statistics with an actual survey from 2008 to 2013. Moreover, it also includes the defense SME’s statistical analysis for the first time on a basis of an industrial survey in the same period. In a similar vein, it suggests policy implications to boost up the Korean defense industry including its SMEs as new growth engines in the near future. This report provides a significant milestone and policy directions for the future development of the Korean defense industry. Korea is the world’s 11th largest defense expenditure country and the 4th largest arms buying country within the recent 10 years. However, the Korean defense industry encounters difficulties due to the monopolistic and oligopolistic industry structure today. In particular, it is necessary to improve the current ‘defense designated product & companies system’ and ‘cost subsidy system’, which impede the progress of defense industry development. The defense industry could suffer from chronic problems of high production costs, low rate of productivity and operating ratio for a long period of time.

Keywords: defense spending; defense industry; defense R&D; Korean defense industry; Korean defense technology; arms exports; weapons systems; weapons exports; defense exports; arms sales; defense policy; defense industry policy; defense industry policy reform; military spending; military spending policy (search for similar items in EconPapers)
JEL-codes: F52 L64 (search for similar items in EconPapers)
Pages: 54 pages
Date: 2015-06-20
References: Add references at CitEc
Citations:

Downloads: (external link)
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4212075 Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:kietop:2015_002

Access Statistics for this paper

More papers in Occasional Papers from Korea Institute for Industrial Economics and Trade Sejong National Research Complex, Korea Institute for Industrial Economics and Trade, 370 Sicheong Dae-ro C-dong 8-12F 30147, Republic of Korea. Contact information at EDIRC.
Bibliographic data for series maintained by Aaron Crossen ().