- [Narrator] Here, South Korea's largest defense company
is testing a new batch of weapons.
The Wall Street Journal got a rare look
inside Hanwha's facilities
as it constructs how it's has destined
for Poland and submarines
that could bolster NATO's arsenal in the future.
That says South Korea is increasing its arms sales
at a rate faster than anywhere else in the world.
In just a five year period,
it has grown its defense exports by 177%.
Although the US, Russia
and France have considerably larger defense industries
analysts say the pace
at which South Korea is expanding its output
marks a substantial shift for the future.
So here's how the country is transforming
into a defense giant and what it means
for the western military alliance.
Workers inside this Hanwha plant are building dozens
of self-propelled K9 Howitzers.
- Hanwha is South Korea's largest defense company.
They are playing a big role in South Korea's arms exports.
- [Narrator] That's largely due to Poland,
a key NATO member purchasing them
as part of a $13.7 billion arms deal.
Military analysts say the rapid speed
the workers here can build them is a major selling point.
The process is completed in three stages.
Assembling the skeleton of the weapon, connecting the parts
and then testing its performance.
Although the company won't disclose
specific production times,
recent deliveries have been prompt.
The first shipment of K9s arrived in Poland in December
just over three months after the deal was signed.
That's in contrast to other arms deals in Europe
that are still ongoing years after the agreements were made.
Hanwha says a quick completion time is a major part
of its strategy to entice new customers.
(gun firing)
Military analysts say South Korea is able
to build these systems
faster than some western counterparts in part
because of decades of escalating regional tensions.
At the end of the Cold War, military powers in Europe
began reducing their capacity
to produce conventional weapons while the threat
from North Korea led Seoul to ramp its production.
In the years since then, South Korea has mostly focused on
developing traditional battlefield weapons.
- So while countries like the US have focused on
creating high-end weapons such as aircraft
and nuclear submarines,
South Korea has focused on other weapons such as artillery.
- [Narrator] But now it's looking
to export more advanced naval designs to the west.
At this Hanwha shipyard, workers are building vessels
including the KSS-III, the company's newest submarine.
Industry analysts say it's one
of the most affordable pieces of its caliber in the world.
Hanwha is negotiating to sell the diesel powered craft
to Canada, another NATO member.
The company is trying to keep costs
and production time down by using automated machines
and producing more components locally.
(speaking in Korean)
The company plans to double its production capacity
for these systems by 2027.
Military analysts say the designs
could help bolster NATO in the future as China's navy,
which is the world's largest, continues to expand.
Traditionally, NATO countries buy weapons
from other member states.
But South Korea, an ally
of the alliance has been fulfilling a niche
for weapons that are in demand due to the war in Ukraine.
(gun firing)
- The US, for example,
has also struggled with supply shortages,
especially as it continues to send lethal aid to Ukraine.
- [Narrator] Military analysts say supply chain problems
haven't been an issue for South Korea
partly because it's not sending lethal weapons to Kyiv.
- Certainly we know that South Korea
has been facing pressure from the US and also NATO
to provide more than non-lethal aid to Ukraine
because many European countries and the US are struggling
in trying to backfill their supply
and they know that South Korea is one
of the most technologically advanced countries
with experience in exporting their arms.
- [Narrator] For South Korea's government,
expanding its defense exports is a key policy objective.
President Yoon Suk Yeol is relying on companies like Hanwha
to reach the goal
of becoming the fourth largest arms exporter by 2027.
The rapid growth is not unsustainable
according to some military analysts who point
to the country's long tradition of manufactured exports.
That includes everything from cars, phones
and semiconductors to container ships.
However, as orders of these weapons stack up
defense analysts say Seoul may be over promising
how fast it can complete them.
Being able to keep delivering them on time
will be key for its success.
(gentle music)