Arms Sales Soar Amid Global Tensions: Korean, Japanese Firms See Surge
Global military spending continued its upward trajectory in 2023, fueled by geopolitical instability and ongoing conflicts like the war in Ukraine and the conflict in Gaza. A new report reveals a 4.2% increase in arms sales by the world’s 100 largest defense companies compared to the previous year, reaching a staggering $632 billion.
While the United States maintains its dominance in the arms industry, with American companies taking up nearly half of the top 10 spots, other nations are making significant strides. Both South Korea and Japan witnessed remarkable growth in arms sales, exceeding $10 billion each.
"Korean companies are working to expand their share of the global arms market, including demand in Europe related to the war in Ukraine," noted Xiao Liang, a researcher at the Stockholm International Peace Research Institute, which published the report.
Korean firms like Hanwha Group, Korea Aerospace, LIG Nex1, and Hyundai Rotem saw a combined sales increase of 39% in 2023, driven in part by the growing need for military hardware in Europe amid the Ukrainian conflict. Hanwha Group, for instance, leaped 18 spots in the global rankings, securing a position at number 24.
Japan also experienced a 35% surge in arms sales, with five Japanese companies featured in the top 100, including Mitsubishi Heavy Industries and Kawasaki Heavy Industries. While exports played a role, the growth appears to be primarily attributed to increased defense spending within Japan itself.
The Japanese government’s decision in late 2022 to develop "enemy base attack capability," giving itself the ability to directly strike missile installations in neighboring countries like North Korea and China, alongside a commitment to raise defense spending from 1% to 2% of GDP, has fueled this domestic demand.
"The rapid increase in arms sales by Korean and Japanese defense companies shows the broader picture that the buildup of arms continues as security tensions in the region continue to grow," Liang stated.
The report also highlighted the impact of the war in Ukraine on Russian arms sales, which have significantly increased, rising by about 40% to $25.5 billion. However, the Institute acknowledged limitations in collecting accurate data on Russian defense spending and sales, stating, "There is a lack of data and there is doubt about the accuracy of the information."
Despite a temporary dip in arms exports in 2022, global arms sales rebounded last year, driven by persistent demand. Nearly three-quarters of the top 100 companies reported increased sales compared to the previous year, suggesting a continued upward trend in the future.
As the world grapples with geopolitical uncertainty and ongoing conflicts, the arms race appears to be intensifying, with countries like South Korea and Japan increasingly playing a more prominent role in the global arms market.
[Image 1: Ukrainian troops preparing for battle on December 1st (local time) – Yonhap EPA News]
[Image 2: The graph compares the growth of arms sales in 2023 compared to 2022:
2024-12-02 11:20:00
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