South Korea and Germany see rising arms export activity

South Korea is aggressively expanding its defense industry, a strategy branded as ‘K-Defense’. Following the goal set by former President Yoon Suk-yeol to become one of the world’s four largest arms exporters, the current administration under Lee Jae-myung continues to promote national producers. Recent developments include Croatia seeking Chunmoo rocket launchers from Hanwha Aerospace, modernization efforts in the Philippines, and established supply chains to Poland and the United Arab Emirates.

Simultaneously, Germany is experiencing an unprecedented boom in arms exports. In 2024, the German government approved exports valued at approximately 13.3 billion euros, up from 12.2 billion euros the previous year. A significant portion of this, roughly 8.1 billion euros, was directed toward supporting Ukraine. This growth affects not only major defense firms but also civilian suppliers of electronics, chemicals, and software.

The rapid expansion of these industries brings increased legal scrutiny. Companies and decision-makers face heightened risks regarding export controls, sanctions law, and personal liability. Violations of these complex regulations can result in significant fines or imprisonment.