The rivalry between South Korea and Japan is intensifying in Southeast Asia and the Middle East defense industry markets. While Japan has traditionally been an exporter of weapons like transport, surveillance, and anti-submarine warfare equipment, it is now aggressively pursuing the development of advanced weaponry, such as fighter jets and warships, to gain a foothold in Southeast Asia. This region has historically been a significant export destination for South Korea. Analysts recommend that South Korea enhance its competitive edge over Japan by implementing a distinct and innovative defense export strategy.
According to industry sources on the 18th, after paying patent fees, Japan is considering allowing the export of licensed weapons manufactured in the country to third countries, such as the United States, the United Kingdom, and Germany.
If the legislature passes the amendment containing this content by the end of this year, it is expected to open up Japan’s weapons export market. Licensed products include PAC-2 surface-to-air missiles, 81mm mortars, 155mm howitzers, and 79 other items.
Major overseas defense companies are strengthening technical exchanges or establishing joint ventures with Japan as a base, suggesting that the range of export items could expand in the long term. The U.K.’s BAE is moving its Asia-wide operations from Malaysia to Japan and is developing a next-generation fighter with Mitsubishi Heavy Industries. Lockheed Martin from the U.S. is relocating its Asia-wide base from Singapore to Japan, intensifying collaboration in areas like radars for Aegis ships.
So far, Japan has been exporting defense equipment centered on rescue, transport, border surveillance, and anti-submarine warfare. Japanese weapons have not stood out in exports due to their high prices and lack of negotiation power. However, as geopolitical risks in the Asia-Pacific region rise and the Japanese government commits to making the defense industry a cornerstone of its national growth strategy, we expect export momentum to increase.
In the medium to long term, there is a possibility of competition with Korea in warships, radars, and military vehicles in regions such as Asia and the Middle East. According to the Industrial Research Institute, South Korea has a higher price competitiveness in maritime weapons systems, ground weapons systems, conventional submarines, and fighter jets. Still, Japan has a higher technology and quality competitiveness. Japan ranks 8th globally in defense technology competitiveness, a step ahead of Korea, and it is expected to gain competitiveness in developing advanced weapons beyond conventional armaments.
Japan is also showing moves to pave the way for the Southeast Asian export market, a new market for Korea. It is considering supporting the budget when the Philippines, Malaysia, and Bangladesh purchase Japanese weapons such as maritime surveillance satellites and wireless systems. Reports also indicate plans to sell used weapons, like AH-1 attack helicopters and P-3 maritime patrol aircraft, to major Asian countries, including India, Vietnam, and the Philippines. These affordable Japanese weapons could pave the way for Japan’s entry into the Southeast Asian market, where budgets have shrunk post-COVID-19, potentially leading to more weapon exports.
Following Japan’s announcement to ramp up its defense spending to the world’s third highest level by 2027, after the U.S. and China, experts suggest Korea should expand its defense export gap with Japan through a more aggressive export policy. An industry official stated, “Easing the restrictions on weapon exports will allow us to leverage our technology, developed through maintaining U.S. military equipment, to expand exports to regions like Northeast Asia.” The official noted, “Weapon exports hinge not just on performance and price but also on diplomatic relations, so Korea must proactively establish networks even in smaller markets.”
By. Ka Rim Kwon
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