Journalist
Kim Hee-su, Han Jun-gu
khs@ajunews.com
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U.S. maritime plan allows initial ship construction in Korea SEOUL, February 14 (AJP) - The White House on Friday unveiled the “America’s Maritime Action Plan” (MAP), a sweeping strategy to revive the U.S. shipbuilding industry that explicitly signals cooperation with South Korea and Japan. It is widely seen as laying out the blueprint for the so-called MASGA (Make American Shipbuilding Great Again) initiative discussed during Korea-U.S. tariff negotiations. The U.S. government states in the report published on the White House website that "it will consult with China on shipbuilding capacity issues and continue its historic cooperation with the Republic of Korea and Japan on revitalizing U.S. shipbuilding." The document makes clear that Washington aims to pursue two goals simultaneously: counter China’s dominance in maritime industries and restore U.S. domestic shipbuilding capabilities, positioning allied cooperation as a strategic pillar in that effort. ‘Bridge Strategy’ allows initial construction abroad A key component of the plan is a so-called “Bridge Strategy,” under which early vessels in a multi-ship contract may be built at a foreign partner’s shipyard, while concurrent capital investments are made in a U.S. shipyard to eventually onshore construction. The MAP describes the concept as a “multi-ship buy wherein the first ships in the contract are built in a foreign shipbuilder’s home shipyard while concurrent direct capital investments are made in a U.S. shipyard … to eventually onshore construction.” Given that the United States currently builds less than one percent of global commercial ships and has limited large-vessel construction capacity, the strategy effectively allows allies such as South Korea and Japan to build initial orders while investing in U.S. facilities, with production gradually shifting to American soil. For Korean shipbuilders, this could open an exceptional pathway to construct early vessels domestically while securing financial incentives tied to U.S. shipyard investment. $150 billion secured for shipbuilding The MAP states that President Donald Trump has secured “at least $150 billion of dedicated investment for America’s shipbuilding industry,” adding that the Department of Commerce “is working to mobilize these funds to achieve the greatest investment in U.S. shipbuilding history.” The $150 billion figure is widely interpreted as corresponding to the shipbuilding-focused package under the MASGA framework, part of the broader $350 billion investment commitments discussed in last year’s Korea-U.S. trade agreement. While the plan opens potential avenues for Korean shipbuilders to participate in early-stage production and U.S. yard investment, it also signals a longer-term shift toward onshoring ship construction and strengthening U.S.-flagged shipping capacity. Industry analysts say the practical impact will depend on how aggressively Washington implements port fees, cargo preference rules and onshore investment requirements in the coming years. Foreign-built vessels face new fees under MAP The MAP also includes measures that could significantly raise costs for foreign-built vessels calling at U.S. ports, potentially affecting Korean shipping and export firms. Under the proposal, Washington would “establish a universal infrastructure or security fee on all foreign-built commercial vessels calling at U.S. ports,” calculated based on the weight of imported cargo. According to the report, a fee of 1 cent per kilogram could generate approximately $66 billion over a decade, while a 25-cent levy could raise as much as $1.5 trillion. The revenue would be directed toward a newly proposed Maritime Security Trust Fund to support U.S. shipbuilding and port infrastructure. The administration also plans to impose a 0.125 percent Land Port Maintenance Tax on goods entering through land borders, effectively applying the levy to exports routed via Canada or Mexico, in line with the Harbor Maintenance Tax on maritime imports. The plan further calls for expanding cargo preference requirements through a new United States Maritime Preference Requirement (USMPR), which would gradually increase the share of U.S.-bound cargo transported on qualifying U.S.-flagged vessels. Taken together, the measures are designed to reduce reliance on foreign-built and foreign-flagged ships while bolstering domestic maritime capacity. However, industry observers warn that the new framework could pressure Korean shipping lines and raise logistics costs for exporters, particularly given that a large share of vessels serving U.S. routes are built in South Korea, Japan and China. 2026-02-14 18:02:33 -
Book-style foldables to dominate global market in 2026 amid memory shortages SEOUL, February 14 (AJP) - The global foldable smartphone market is expected to shift from clamshell-style devices to book-type models in 2026, according to market research firm Counterpoint Research. According to Counterpoint on Saturday, book-type devices are projected to increase their share of the total foldable smartphone market from 52 percent in 2025 to around 65 percent in 2026, accounting for the majority of global foldable shipments. The shift reflects continued improvements in hardware quality and usability, as well as growing manufacturer confidence in high-value form factors. By contrast, clamshell-style foldables are expected to see a gradual decline in market share as they become positioned primarily as style-focused or complementary offerings within the mid- to upper-priced segment. Counterpoint also forecasts that Apple’s entry into the foldable smartphone market will play a meaningful role in this structural shift. Industry observers expect Apple to unveil its first foldable smartphone in the second half of 2026. The device is widely anticipated to adopt a book-type form factor featuring a wide foldable display with a 1:1.414 aspect ratio, optimized for multitasking, document viewing and content consumption. While market performance will depend on pricing, launch timing and product positioning, Apple’s entry is expected to significantly influence leadership dynamics within the book-type foldable segment and accelerate broader market adoption. Android smartphone makers are also adjusting their strategies in response. Samsung Electronics reached a key inflection point in the second half of 2025 as shipments of its Galaxy Z Fold 7 surpassed those of the Galaxy Z Flip 7, signaling improved product maturity for traditional book-type foldables. Samsung is also reportedly preparing to launch a wider-screen book-type model similar in form factor to what Apple is expected to adopt, aiming to enhance multi-panel productivity features. The strategic pivot is becoming increasingly visible across the Android ecosystem as vendors reassess their foldable strategies amid profitability and inventory management concerns. While clamshell models played a critical role in expanding the early foldable market, book-type devices are now seen as central to long-term growth. Motorola unveiled its first book-type foldable at CES 2026, and Google continues to invest in its Pixel Fold lineup. Tarun Pathak, research director at Counterpoint, said tightening supplies of memory components — particularly those used in mid- and low-end smartphones — are clouding demand visibility in the mass market. “In this environment, manufacturers are expected to shift their focus from volume expansion to profitability, prioritizing higher-margin products,” Pathak said. “Book-type foldables, equipped with premium specifications and higher memory configurations, help lift average selling prices and are well positioned within a value-driven growth strategy,” he added. 2026-02-14 13:30:44 -
Olive Young draws crowds at Milano Olympics Korea House with K-beauty booth SEOUL, February 14 (AJP) - CJ Olive Young has opened a promotional booth at the Korea House during the 2026 Milano–Cortina Winter Olympics, showcasing K-beauty products and supporting South Korea’s national team. According to the company on Saturday, Olive Young has been operating a “Lip Touch-Up Bar” since Feb. 6 at the Korea House in Milan, allowing visitors to experience K-beauty products firsthand. The booth, featuring color cosmetics from Olive Young’s private label brand Colorgram, has drawn heavy foot traffic, at one point prompting temporary crowd control measures due to overwhelming demand. Visitors have reportedly flooded staff with inquiries about where the featured products can be purchased. Olive Young has also provided South Korea’s Olympic athletes with travel-sized “K-beauty kits” comprising 18 items. The kits include six skincare products covering the full K-beauty routine from cleansing to masks, six snack items, and travel-size hair, body and dental care products. The company said the kits were designed with athletes’ extended overseas stay in mind. The growing popularity of K-beauty was also evident during the 2025 Asia-Pacific Economic Cooperation (APEC) summit held in Gyeongju last October, when Olive Young saw a surge in sales at its Hwangridan-gil store. At the time, White House Press Secretary Karoline Leavitt posted photos on social media of 13 Korean cosmetic products she purchased at Olive Young, describing them as “South Korea skincare finds.” The items included sheet masks, cleansing products and lip balms. Diana Carney, spouse of Canadian Prime Minister Mark Carney, also said she received a shopping list from her daughter, who has a strong interest in Korea and specifically requested K-beauty products from Olive Young. Last month, Olive Young signed an official partnership with Sephora, the world’s largest beauty retail chain, accelerating its global expansion. In the second half of this year, the company plans to launch curated “K-beauty zones” across six regions, including the United States and Canada in North America, as well as major Asian markets, through Sephora’s online and offline channels. Olive Young currently operates a global online mall and plans to open its first U.S. offline store in May, followed by additional overseas locations. “The booth was designed to raise the visibility and status of K-beauty at the Olympic stage,” an Olive Young official said. “We will continue efforts to ensure that customers around the world can easily experience and access a wide range of brands.” 2026-02-14 12:58:50 -
President Lee to focus on policy planning during Lunar New Year holiday SEOUL, February 14 (AJP) - President Lee Jae Myung will scale back public engagements during the five-day Lunar New Year holiday beginning Saturday and remain at the presidential residence to focus on policy planning, officials said. Lee is expected to review a range of pressing domestic and external issues, including tariff negotiations with the United States, efforts to stabilize the real estate market, and administrative integration, while refining his policy direction for the second year of his term. According to the presidential office, Lee will not travel to his hometown of Andong in North Gyeongsang Province or to the presidential retreat on Geoje Island during the holiday period. Instead, he is expected to spend time primarily with family at the residence. During last year’s Chuseok holiday in October, Lee attended an event for displaced Koreans and visited a child welfare facility and a traditional market. He also paid respects at his family graves in Bonghwa and Andong in North Gyeongsang Province. Lee’s increased activity on social media in recent weeks is expected to continue over the holiday. On the eve of the holiday, he posted consecutive messages addressing real estate issues, effectively setting market normalization as a key topic for the festive period. On Friday, Lee uploaded two posts suggesting the need for tighter lending regulations on multiple-home owners. Delays in the National Assembly’s legislative process and escalating tensions between the ruling and opposition parties remain among Lee’s concerns. A planned luncheon with party leaders ahead of the holiday was canceled on Thursday, adding to the political deadlock. The impasse has raised concerns that parliamentary handling of a special bill on U.S. investment, aimed at responding to Washington’s plan to impose a 25 percent tariff increase, could be delayed. With local elections scheduled for June, discussions over potential reshuffles within the presidential office and Cabinet are also expected to take shape. Following the holiday, Brazilian President Luiz Inácio Lula da Silva is scheduled to pay a three-day state visit to South Korea beginning Feb. 22. 2026-02-14 11:12:52 -
Cha Jun-hwan narrowly misses bronze by less than a point, sets Korean record SEOUL, February 14 (AJP) - On the ninth day of competition at the 2026 Milano–Cortina Winter Olympics on Friday, South Korean athletes delivered notable performances in figure skating and snowboarding. South Korea maintained its tally of one gold, one silver and two bronze medals, remaining 13th in the overall medal standings. Figure skating: Cha Jun-hwan just off the podium In men’s figure skating, Cha Jun-hwan delivered a solid free skate at the Milano Ice Skating Arena to finish 4th overall, marking the best Olympic result yet for a Korean male singles skater. Cha’s total score of 273.92 saw him narrowly miss the bronze medalist Shun Sato of Japan, who scored 274.90 by less than one point after a strong performance highlighted by a clean quad Salchow, though a fall on his quad toe loop brought a deduction. Cha, who placed 15th at the 2018 PyeongChang Winter Olympics — then the best result by a South Korean man in the singles event — improved to fifth at the 2022 Beijing Games. He climbed one spot higher this time to set a new personal Olympic best. Gold-medal favorite Ilia Malinin of the United States struggled under the pressure of his Olympic debut, delivering an uncharacteristically flawed performance and finishing eighth with 264.49 points. With several medal contenders faltering, Kazakhstan’s Mikhail Shaidorov capitalized to claim a surprise gold medal with 291.58 points, securing his country’s first gold of the Games. Snowboarding: Lee finishes sixth in halfpipe, Woo competes in cross At Livigno Snow Park, Lee Chae-un competed in the men’s snowboard halfpipe final and finished 6th with 87.50 points. The 19-year-old landed signature tricks including the frontside triple cork 1620 but fell short of the medals against a deep field. His run showcased Korean progression in snowboarding disciplines. Woo Su-bin, in South Korea’s first Olympic appearance in snowboard cross, was unable to advance to the 16-athlete round after a mid-race slip. She completed her heat despite the fall and won applause from the crowd. Curling: Korea improves to 2-1 in round robin South Korea’s women’s curling team defeated Britain 9-3 in its third round-robin match at the Cortina Curling Olympic Stadium in Cortina d’Ampezzo. The team, skipped by Kim Eun-ji, bounced back from an opening 4-8 loss to the United States with consecutive wins over Italy (7-2) and Britain to improve to 2-1. South Korea moved into a tie for third place among the 10 teams in the standings. In the round-robin format, the top four teams advance to the semifinals. Sweden leads at 3-0, followed by Switzerland. South Korea will face Denmark (1-2) and Japan (0-2) in its next two matches on Feb. 15. Skeleton, Biathlon and Cross-Country: Jung posts second straight top-10 finish In men’s skeleton at the Cortina Sliding Center, Jung Seung-gi clocked a combined time of 3:45.90 over four runs to finish 10th. After placing 10th in his Olympic debut at the 2022 Beijing Games, Jung secured another top-10 finish at his second Olympics. Veteran Kim Ji-soo, competing in his first Olympic appearance since the 2018 PyeongChang Games, finished 16th with a four-run total of 3:48.11. In women’s skeleton at the same venue, Hong Su-jung recorded a combined time of 1:57.33 over two runs to place 22nd among 25 competitors. At the Anterselva Biathlon Arena, Choi Du-jin finished last in the men’s 10-kilometer sprint, crossing the line in 28:05.7 after missing three shots in the prone stage. In cross-country skiing, Lee Jun-seo placed 73rd out of 113 athletes in the men’s 10km interval start free at the Tesero Cross-country Skiing Stadium, finishing in 24:25.4. Norway’s Johannes Klæbo won the event in 20:36.2 to claim his third gold medal of the Games and the eighth Olympic gold of his career, tying the all-time Winter Olympic record. 2026-02-14 10:41:43 -
To keep US troops, Seoul may have too look beyond NK in defense axis SEOUL, February 12 (AJP) - The U.S. National Defense Strategy (NDS), released last month one year into the Trump administration, delivers a message that is clear — take “primary responsibility” for own defense and expect “critical but limited” U.S. support. For South Korea, which has relied on the U.S. deterrence umbrella against North Korea for more than 70 years, the language feels unsettling. But beneath the rhetoric lies a deeper structural shift: Washington’s strategic focus is no longer centered primarily on Pyongyang. It is centered on Beijing. That shift may ultimately determine the future shape — and relevance — of U.S. Forces Korea (USFK). Speaking at a recent forum in Washington, Kelly Grieco of the Stimson Center said that under a second Trump administration, “we are likely to see some form of effort to reduce troop levels or scale back the U.S. military presence on the Korean Peninsula.” The 2026 NDS describes South Korea and Europe as “model allies.” Yet they are also the regions where Washington has most openly explored troop reductions — a paradox reflecting President Donald Trump’s transactional view of alliances. Trump has repeatedly argued that wealthy allies benefiting from U.S. security guarantees should bear greater financial burdens. During his first term, troop levels in South Korea became leverage in cost-sharing negotiations. Despite strong words, a sweeping withdrawal remains unlikely. The fiscal 2026 National Defense Authorization Act prohibits reducing U.S. troop levels in South Korea below 28,500 without strict national security conditions and prior consultation with allies. Strategically, the peninsula remains one of Washington’s most valuable forward positions in Northeast Asia. “The U.S. currently lacks a better strategic location than the Korean Peninsula for deterring China and, to some extent, Russia,” said Koh Yu-hwan, professor at Dongguk University. Even if heavy Army units were trimmed — as some analysts suggest — air and naval assets could be strengthened, aligning with a broader U.S. shift toward more flexible and mobile force structures. In other words, the debate is not about departure. It is about mission. For decades, Seoul’s defense narrative has been built almost entirely around deterring North Korea. That framework was logical in an era when Pyongyang represented the primary threat and Washington’s Asia strategy was narrower in scope. But today, U.S. military planning is dominated by competition with China. In Pentagon documents and congressional hearings, Beijing — not Pyongyang — is identified as the pacing challenge. This creates a strategic question for Seoul: If USFK is viewed in Washington purely as a North Korea deterrent force, does it risk becoming less central to America’s long-term priorities? To remain indispensable, South Korea may need to broaden its defense axis — not by abandoning deterrence against the North, but by positioning itself more clearly within the wider Indo-Pacific security architecture. That means acknowledging that the Korean Peninsula is not only a frontline against North Korea, but also a critical geographic anchor in managing regional stability vis-à-vis China. The timing is significant. Seoul and Washington are working toward 2028 as the target year for transferring wartime operational control (OPCON) to a South Korean commander. Under the envisioned structure, a South Korean four-star general would lead the future Combined Forces Command, with a U.S. general serving as deputy. Although OPCON transfer is formally separate from troop reduction debates, it could create political and strategic space for recalibrating USFK’s role. As Washington adjusts its global force posture — including modest recalibrations in Europe — the emphasis appears to be on efficiency and strategic alignment rather than large-scale retrenchment. For South Korea, that suggests the future of USFK will depend less on fixed troop numbers and more on mission relevance. 2026-02-12 16:42:28 -
VW's electrification push adds pressure on South Korea in Canada's $41bn submarine bid SEOUL, February 11 (AJP) - Germany’s industrial offensive is widening beyond defense and into electric vehicles, adding fresh pressure on South Korea in Canada’s $41 billion submarine procurement race. On Wednesday, Volkswagen Group doubled down on its global electrification drive despite slowing EV demand worldwide, highlighting production milestones that underscore Germany’s manufacturing scale — a key factor as Berlin backs a consortium competing against South Korea for Canada’s Canadian Patrol Submarine Project (CPSP). Volkswagen said its global production network, spanning Győr in Hungary, Tianjin in China and Kassel in Germany, has now surpassed 5 million electric drive systems. The Kassel plant alone increased output by 24 percent year-on-year, producing more than 850,000 units this year. Beyond volume, the company emphasized technological self-reliance, noting it develops and manufactures core components in-house, including the pulse inverter — often referred to as the “brain” of an electric vehicle — and key control systems. Industry observers say the timing is hardly coincidental. Canada’s submarine program has evolved into more than a defense procurement. Facing tariff uncertainty under U.S. President Donald Trump, Ottawa has made domestic industrial revitalization and job creation central criteria in evaluating bids. Germany has already secured a foothold in Canada’s battery sector. Volkswagen’s battery subsidiary PowerCo is building a C$7 billion gigafactory in St. Thomas, Ontario — its first such facility in North America. According to The Globe and Mail, German Economy Minister Katherina Reiche recently visited Ottawa and met senior members of Prime Minister Mark Carney’s cabinet to promote German automotive investment. In an interview, Reiche said discussions went “more than just talking,” adding that “we are looking into numbers, into details.” Analysts interpret the move as part of a coordinated German strategy: pairing submarine technology with tangible, large-scale industrial investment. Against Germany’s aggressive push, Korea’s consortium of Hanwha Ocean and HD Hyundai Heavy Industries faces mounting pressure. While Volkswagen has finalized multibillion-dollar investments and is showcasing operational facilities, Hyundai Motor Group has yet to formalize plans for a direct EV production base in Canada. Industry experts argue Seoul must move beyond a defense-only pitch and present an integrated industrial package. “One defense platform alone is not enough,” said a Seoul-based defense industry official. “Korea needs to link Hyundai and Kia’s EV technologies with battery leaders like LG Energy Solution, SK On, and Samsung SDI, offering Canada a concrete mobility and defense ecosystem.” Such a package, analysts say, could counterbalance Germany’s early-mover advantage in large-scale manufacturing investment. Ryu Yeon-seung, director at the Institute of Defense Industrial Security, cautioned that not all cooperation details can be disclosed publicly. “Regarding cooperation with the three major Korean battery makers, some aspects have not been made public, and some cannot be disclosed,” Ryu said. “Germany is a competitor, so we cannot reveal all of our cards. Doing so would put us at a disadvantage in negotiations.” He added that he understands the government is already working on such coordination at the practical level. While some market watchers see Germany holding the upper hand due to NATO alignment and its visible industrial footprint in Canada, Ryu stressed that the outcome remains open. “No one can guarantee the result,” he said. “If NATO membership alone determined everything, Canada would not still be weighing options between South Korea and Germany.” 2026-02-11 17:51:53 -
South Korea to send submarine to Canadian waters ahead of $41bn bid decision SEOUL, February 10 (AJP) - South Korea will deploy a submarine to Canadian waters in June for its first-ever joint naval exercise with Canada, a high-profile move that coincides with Ottawa’s selection process for a $41 billion next-generation submarine program. According to military sources on Tuesday, the deployment will mark the first time a South Korean submarine operates in Canadian waters. The vessel is scheduled to depart in March and cross the Pacific ahead of the drill. The exercise comes as Canada advances its Canadian Patrol Submarine Project, a major procurement aimed at replacing its aging fleet. Ottawa is expected to choose between South Korea and Germany as early as the first half of the year. Defense officials say the timing gives Seoul an opportunity to showcase the operational range and reliability of its domestically built submarines. “Simply reaching Canadian waters requires long-distance deployment and sustained operations,” a South Korean naval official said. “This is what we call blue-water operational capability. The voyage itself demonstrates the vessel’s reliability.” “The Canadian side will be able to verify firsthand that our submarines can operate globally,” the official added. Linked to submarine competition Canada is seeking to replace its current fleet and is expected to receive final bids by March, with a preferred bidder likely to be selected in the following months. Germany is widely regarded as South Korea’s main competitor. Military officials view Canada’s agreement to conduct its first joint naval exercise with South Korea as a sign of growing interest in Korean platforms. Discussions began during an October visit to Seoul by Angus Topshee, commander of the Royal Canadian Navy. “The exercise was discussed as part of broader efforts to strengthen naval cooperation,” a South Korean official said. “It is also true that the submarine being deployed, or its follow-on model, is one Canada has shown interest in.” While officials stopped short of explicitly linking the drill to the procurement contest, they acknowledged that the timing was strategically favorable. “Canada judged that this was a mutually beneficial moment, given South Korea’s operation of a proven 3,000-ton-class submarine fleet,” the official said. Military-backed support for industry bid Officials said there have been no direct bid-related negotiations involving shipbuilders, including HD Hyundai Heavy Industries and Hanwha Ocean. However, the South Korean Navy is providing indirect support by highlighting its training, operations and maintenance systems to Canadian officials. When senior Canadian decision-makers visit South Korea, the Navy demonstrates its training infrastructure and maintenance facilities built around its submarine fleet. Through briefings and site tours, officials aim to reassure Ottawa that Seoul can offer not only hardware, but also a comprehensive package of training, logistics and lifecycle support. As Seoul and Ottawa prepare for their first joint submarine exercise in Canadian waters, attention is now focused on whether this high-profile operational “road test” will give South Korea the edge it needs to outmaneuver its German rival and secure one of the largest defense contracts in its history. 2026-02-10 17:19:59 -
Korea targets $109B Middle East arms market amid aggressive budgeting SEOUL, February 09 (AJP) - With hundreds of billions of dollars pouring into Middle Eastern rearmament, South Korea’s defense industry is moving aggressively to claim its share—using a major arms fair in Riyadh as the gateway to a $109 billion market. The coordinated push is centered on the World Defense Show (WDS), running from Feb. 8 to 12 in the Saudi capital. The event is the region’s largest integrated defense exhibition and a key platform for securing long-term export contracts and industrial partnerships. This year’s show has drawn record participation from Korean companies, reflecting Seoul’s ambition to position itself as a major supplier in a region long dominated by U.S. and European arms makers. Major manufacturers, including Hanwha Aerospace, Hyundai Rotem, LIG Nex1 and Korea Aerospace Industries (KAI), are showcasing their systems. In particular, HD Hyundai Heavy Industries, LIG Nex1, KAI and EO System have jointly operated a combined booth, highlighting what industry officials describe as a “one-team” approach. The strong showing comes as defense budgets across the Middle East and Africa surge amid intensifying security threats and delayed modernization programs. According to Mordor Intelligence, the Middle East and Africa defense market is expected to reach $73.4 billion in 2026 and expand to about $109.4 billion by 2031, implying an average annual growth rate of 8.3 percent. The broader Middle East and North Africa region already accounts for roughly 27 percent of global major arms imports, according to the Stockholm International Peace Research Institute (SIPRI). Qatar, Saudi Arabia, Egypt and Kuwait rank among the world’s top 10 importers. Strategic analysts say recent regional tensions have reinforced these trends. The Israel–Hamas war, clashes between Israel and Hezbollah in Lebanon, and continued friction involving Iran and its proxies have all contributed to rising military spending. SIPRI estimates that Middle Eastern military expenditure reached $243 billion in 2024, up 15 percent from the previous year. Demand is growing for long-range strike systems, integrated air and missile defense, and naval security—areas in which Korean firms have already built export track records in Europe and Asia. Diversification and Localization For Korean exporters, a crucial shift is under way. Gulf and North African buyers, long dependent on U.S. and European suppliers, are increasingly diversifying their sources, pairing high-end Western platforms with more cost-effective alternatives. At the same time, localization and technology-transfer requirements are intensifying under national strategies such as Saudi Arabia’s Saudi Vision 2030, which aims to raise domestic defense procurement to 50 percent of total spending by the end of the decade. Korean firms, which have demonstrated co-production and technology-sharing models in Poland, are now promoting similar frameworks in the Middle East. A notable feature of this year’s WDS is the way Korean companies are presenting themselves as integrated solution providers rather than stand-alone exporters. Hanwha is using the exhibition to promote localization-ready systems aligned with Vision 2030, including a K9A1 self-propelled howitzer configured for desert operations and local production. “Discussions on exports to Saudi Arabia are under way, but it is difficult to say a deal will be finalized this year,” a Hanwha Aerospace official said. Hyundai Rotem is seeking to build on growing interest in its K2 main battle tank, following major contracts in Poland. Regional media reported that senior Iraqi defense officials visited the company’s booth and showed interest in the platform, with officials noting that political stabilization could lead to more concrete talks. KAI is also quietly cultivating expectations around potential exports of its KF-21 fighter, which will be introduced to partners such as the Philippines and the United Arab Emirates. Meanwhile, Hyundai WIA, making its WDS debut, is using the event to raise its profile as a key subsystem supplier. The company is the sole producer of gun barrels for the K9 howitzer and K2 tank. “Our defense-related revenue has more than doubled over the past three years,” a Hyundai WIA official said. Market Confidence The sector’s momentum is also reflected in financial markets. Korea’s benchmark KOSPI has recently surpassed the 5,000-point mark, signaling investor confidence in the country’s transition toward high-value manufacturing and defense industries. Hanwha Aerospace’s latest earnings have reinforced that trend. The company’s consolidated sales nearly doubled to 26.6 trillion won ($18.21 billion) in 2025, with operating profit jumping 75 percent year-on-year to 3.03 trillion won. Both revenue and operating profit reached all-time highs, while Hanwha Ocean also set record results for the third consecutive year since 2023. Combined sales of Hanwha Aerospace, Hyundai Rotem, LIG Nex1 and KAI exceeded 40 trillion won for the first time, reaching about 40.9 trillion won. Operating profit totaled roughly 5.2 trillion won, ushering in what analysts describe as a “5-trillion-won operating profit era.” The four companies’ combined order backlog is approaching 100 trillion won, effectively securing four to five years of production and signaling that the sector has entered a phase of structural growth rather than a short-term boom. For Korea’s defense exporters, the Middle East is no longer a peripheral market. It is fast becoming a central pillar in their global strategy—where scale, localization and long-term partnerships will determine who captures the next phase of the region’s rearmament boom. 2026-02-09 17:27:15 -
South Korea, U.S. air forces hold first Buddy Squadron exercise of the year SEOUL, February 09 (AJP) - The South Korean Air Force and the U.S. Air Force on Monday began their first Buddy Squadron exercise of the year, which runs through Friday, at Osan Air Base in Gyeonggi Province. The Buddy Squadron exercise is a squadron-level combined air drill in which South Korean and U.S. fighter units take turns training together at air bases across the country. The exercise began in 1991 under the name “Friendship Training” to enhance combined operational capabilities by allowing pilots from both countries to train jointly and familiarize themselves with the latest tactics, techniques and procedures. It was renamed the Buddy Squadron exercise in 1997. Under a revised training framework this year, the two air forces plan to more than double the number of participating aircraft and significantly increase the number of training sorties per exercise, while reducing the annual number of iterations from eight to four. The current 26-1 iteration involves KF-16 fighters from the South Korean Air Force and F-16s from the U.S. Air Force. South Korea’s F-35A stealth fighters and FA-50 light attack aircraft will also participate to support integrated operations between fourth- and fifth-generation aircraft. After completing their deployment to Osan on Monday, South Korean pilots will undergo local base procedures as well as safety and security briefings. They will then conduct joint training with U.S. pilots, including air-to-air tactical exchanges and integrated fourth- and fifth-generation fighter operations. The exercise incorporates realistic scenarios that reflect lessons learned from modern warfare. During the drills, South Korean and U.S. forces will alternate between friendly and opposing roles and form mixed formations through a variety of tactical training methods. Capt. Lee Seung-hyun, a KF-16 pilot participating in the exercise, said the training would “serve as an opportunity for South Korean and U.S. pilots to share the latest tactics, fly together and strengthen interoperability.” 2026-02-09 12:33:06