South Korean defence industry to hit US$32.5 billion in 2015

Feb. 15, 2011 - PRLog -- According to the report “The South Korean Defense Sector” available at http://www.reportbuyer.com/ICD00019 the South Korean defence industry is expected to grow at a CAGR of 7.39% over the forecast period, from an estimated US$22.4 billion in 2009 to an expected US$32.5 billion in 2015. The perceived threat of nuclear attacks from neighbour North Korea will drive growth in defence expenditure, despite South Korea's military superiority.

The South Korean defence industry is also set to benefit from economic growth, a military modernization plan, and a planned reduction in defence personnel. During the review period, the country maintained a defence expenditure of 2.5% of its gross domestic product (GDP), which is expected to continue during the forecast period. During the review period, 69% of the defence budget was allocated for revenue expenditure, while the remaining 31% was assigned to capital expenditure. However, as the government plans to reduce the size of its forces, capital expenditure is expected to receive an increased allocation during the forecast period.

The key opportunities in the industry are expected in areas such as armoured vehicles, joint direct attack munitions (JDAMs), fighter planes and VIP aircrafts, multi-mission helicopters, anti-mine equipment, warships, tanks, rocket launchers, and military trucks. Furthermore, although the country has not yet experienced any terror activity from external terrorist organisations (excluding those from North Korea), the globalisation of terrorism and increased threat from organizations such as Al-Qaeda and several indigenous terrorist groups will support the expansion of the homeland security market. The three main areas of growth are expected to be in aviation security, cyber security and the aerial surveillance market.

The report “The South Korean Defence Sector” is available from Report Buyer at:
http://www.reportbuyer.com/industry_manufacturing/defence...

Reportbuyer Product Code: ICD00019

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