South Korea Aerospace & Defense Market Size, Share, Industry Overview, Trends and Forecast 2025-2033
Posted by imarcgroup
from the Business category at
03 Dec 2025 06:07:11 am.
Share this page: 
South Korea Aerospace & Defense Market Overview<o:p></o:p>
The SouthKorea aerospace & defense market size was valued at USD 15.59Billion in 2024 and is projected to reach USD 28.20 Billion by 2033, growing ata CAGR of 6.10% during the forecast period 2025-2033. Growth is driven byrising space exploration activities, military modernization initiatives, increasinginvestments in cybersecurity to defend critical infrastructure, and expansionin international defense collaborations. These factors collectively boostdemand for advanced technology upgrades and strategic security solutions in thecountry. <o:p></o:p>
Study Assumption Years<o:p></o:p>
- Base Year: 2024<o:p></o:p>
- Historical Year/Period: 2019-2024<o:p></o:p>
- Forecast Year/Period: 2025-2033<o:p></o:p>
South Korea Aerospace & Defense Market Key Takeaways<o:p></o:p>
- Current Market Size: USD 15.59 Billion in 2024<o:p></o:p>
- CAGR: 6.10% during 2025-2033<o:p></o:p>
- Forecast Period: 2025-2033<o:p></o:p>
- South Korea is advancing military capabilities with USD 4 Billion committed in 2024 for defense upgrades including Ulsan-class frigates and long-range air-to-air missiles development.<o:p></o:p>
- Cybersecurity investments have increased due to 1.62 million daily cyberattack attempts in 2023, predominantly from North Korean sources.<o:p></o:p>
- International defense partnerships, such as in missile production with Poland, are strengthening export potential and technology transfers.<o:p></o:p>
- Domestic MRO and modernization efforts like the KRW 961.3 Billion UH-60 helicopter upgrade project enhance self-reliance and operational readiness.<o:p></o:p>
- Space exploration targets include moon and Mars missions by 2032 and 2045 with space budgets exceeding KRW 1.5 trillion.<o:p></o:p>
Sample Request Link: https://www.imarcgroup.com/south-korea-aerospace-defense-market/requestsample<o:p></o:p>
Market Growth Factors<o:p></o:p>
South Korea's aerospace & defense market growth isdriven by structured military modernization initiatives. In 2024, thegovernment allocated USD 4 Billion for upgrades, including USD 2.35 Billion tobuild advanced Ulsan-class frigates and USD 1.1 Billion for developinglong-range air-to-air missiles for the KF-21 fighter. This targeted investmentis enhancing platform performance and defense readiness while expanding globalmarket opportunities.<o:p></o:p>
The increasing prevalence of hostile cyber activity haselevated the need for robust digital security systems. In 2023, dailycyberattack attempts on public institutions reached 1.62 Million, with around80% originating from North Korea. These rising cyber threats have led toheightened investments in cybersecurity infrastructure to protect criticalmilitary assets and communications.<o:p></o:p>
Parallel to defense modernization, South Korea isambitiously investing in aerospace exploration with government plans for moonand Mars missions by 2032 and 2045, supported by a space budget of over KRW 1.5trillion. These moves underpin the development of a tech-driven defenseecosystem that integrates space capability expansion with national securitystrategies.<o:p></o:p>
Market Segmentation<o:p></o:p>
Analysis by Industry:<o:p></o:p>
- Manufacturing, Design, and Engineering: South Korea invests in advanced aerospace R&D and precision systems including aircraft components and guided weapons. Local firms like Korea Aerospace Industries and Hanwha lead innovation, reducing foreign reliance and boosting exports.<o:p></o:p>
- Maintenance, Repair, and Overhaul (MRO): Increasing military and commercial aircraft require expanded MRO services. Korean Air and KAI provide lifecycle and modernization services, enhancing self-reliant defense logistics and generating skilled jobs.<o:p></o:p>
Analysis by Type:<o:p></o:p>
- Aerospace: Includes Space, Civil Aviation. Strategic investments target domestic aircraft, satellites, and dual-use aerospace to bolster competitiveness and innovation through public-private initiatives.<o:p></o:p>
- Defense: Encompasses Army, Navy, Airforce. Investments focus on advanced missile systems, unmanned platforms, and export growth, supported by procurement localization and government innovation funding.<o:p></o:p>
Regional Insights<o:p></o:p>
The Seoul Capital Area is the dominant region for aerospaceand defense activity, driven by proximity to government agencies, R&Dinstitutes, and headquarters. It hosts major firms and defense think tanks,benefiting from regulatory facilitation and tech innovation hubs. Thisconcentration supports accelerated national projects and robust export-orientedgrowth in the sector.<o:p></o:p>
Recent Developments & News<o:p></o:p>
In April 2025, South Korea and the UAE signed an MoU toconduct regular bilateral Air Force meetings every six months, including jointtraining and KF-21 cooperation, making the UAE the first Middle Eastern countrywith this partnership. In March 2025, Shield AI collaborated with KoreaAerospace Industries to integrate AI autonomy into manned-unmanned teamingprograms to enhance combat capabilities. Hanwha Aerospace also announced a USD2.5 Billion rights offering in March 2025 to expand defense production andR&D facilities, targeting KRW 70 trillion sales by 2035.<o:p></o:p>
Key Players<o:p></o:p>
- Hanwha Aerospace<o:p></o:p>
- Korea Aerospace Industries<o:p></o:p>
- LIG Nex1<o:p></o:p>
- Hyundai Rotem<o:p></o:p>
- Hyundai WIA<o:p></o:p>
- Korea Aerospace Research Institute<o:p></o:p>
- Lockheed Martin<o:p></o:p>
- Boeing<o:p></o:p>
- Raytheon Technologies<o:p></o:p>
- BAE Systems<o:p></o:p>
- Airbus Defense and Space<o:p></o:p>
If you require any specific information that is not coveredcurrently within the scope of the report, we will provide the same as a part ofthe customization.<o:p></o:p>
About Us<o:p></o:p>
IMARC Group is a global management consulting firm thathelps the world’s most ambitious changemakers to create a lasting impact. Thecompany provide a comprehensive suite of market entry and expansion services.IMARC offerings include thorough market assessment, feasibility studies,company incorporation assistance, factory setup support, regulatory approvalsand licensing navigation, branding, marketing and sales strategies, competitivelandscape and benchmarking analyses, pricing and cost research, and procurementresearch.<o:p></o:p>
Contact Us<o:p></o:p>
IMARC Group,<o:p></o:p>
134 N 4th St. Brooklyn, NY 11249, USA,<o:p></o:p>
Email: sales@imarcgroup.com,<o:p></o:p>
Tel No: (D) +91 120 433 0800,<o:p></o:p>
United States: +1-201971-6302<o:p></o:p>
0 Comments