South Korea Expands K-Defense Sales at NATO Summit

President Yoon Suk Yeol held bilateral talks with Norway, Ukraine, and Romania on July 8, continuing his 'K-defense sales diplomacy' for the second consecutive day.

While attending the NATO summit in Turkey, President Yoon focused on expanding exports for domestic defense companies and establishing a foundation for integration into NATO's supply chain through meetings and informal gatherings with leaders of countries seeking defense cooperation. The government aims to accelerate its goal of becoming one of the world's top four defense exporters. A planned bilateral meeting with the Netherlands was canceled due to scheduling conflicts.

The 32 NATO member countries, which account for about 55% of global defense spending, are significantly increasing their military budgets in response to changing security environments. The South Korean government plans to broaden its export base by enhancing cooperation with NATO, the world's largest defense market. Although South Korea is not a NATO member, it was invited to participate as part of the 'IP4' (Indo-Pacific Partners) alongside Japan, New Zealand, and Australia.

During the NATO summit, President Yoon officially proposed elevating the defense industry partnership to 'K-NATO Defense Industry Partnership 2.0,' moving beyond simple arms transactions to joint production, research, and operations.

He also initiated discussions on strengthening institutional cooperation, including NATO-standard information sharing and a 'procurement basic agreement,' which outlines the legal and administrative aspects necessary for logistics and defense cooperation and procurement contracts between NATO and partner countries. The agreement is expected to pave the way for South Korean companies to enter the NATO joint procurement market, valued at 15 trillion won annually.

National Security Office Director Kim Sung-han stated on July 7 at a press briefing in Ankara, Turkey, that they have secured a foothold for entering the NATO defense market and building a robust defense supply chain.

He added that South Korea will now participate as an observer in multinational cooperation projects, including ammunition and space projects, which NATO allies have been jointly developing, and that this expands South Korea's involvement in defense raw materials projects.

Participating in ammunition, defense, and raw materials projects will enhance interoperability between South Korea and NATO weapon systems and contribute to stable procurement conditions for South Korean military supplies.

NATO allies agreed at a summit in The Hague in June 2022 to increase defense spending to 5% of GDP by 2035, up from the current 2%.

Additionally, President Yoon pledged $100 million in comprehensive support for Ukraine, although this support will not include lethal weapons.

Director Kim emphasized that the government has consistently supported Ukraine through various channels, including humanitarian aid, and that the $100 million commitment is an extension of that support.

He stated, "Through our comprehensive support pledge for Ukraine, we have demonstrated our commitment to contributing to international peace and security. South Korea will continue to work with the international community to ensure that the horrific war ends soon and that a peaceful daily life can be restored."

Following the NATO summit, President Yoon will begin a state visit to Mongolia on July 9, marking the first visit by a South Korean president to Mongolia in 15 years since 2011.