IMARC Group has recently released a new research study titled “South Korea Aerospace & Defense Market Size, Share, Trends and Forecast by Industry, Type, and Region, 2025-2033”, offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends and competitive landscape to understand the current and future market scenarios.

South Korea Aerospace & Defense Market Overview

The South Korea aerospace & defense market size was valued at USD 15.59 Billion in 2024 and is projected to reach USD 28.20 Billion by 2033, growing at a CAGR of 6.10% during the forecast period of 2025-2033. Growth drivers include rising space exploration activities, military modernization with advanced technologies, and increased cybersecurity investment to secure critical military infrastructure. This underpins a tech-driven, resilient defense ecosystem in South Korea.

STUDY ASSUMPTION YEARS

  • Base Year: 2024
  • Historical Years: 2019-2024
  • Forecast Period: 2025-2033

SOUTH KOREA AEROSPACE & DEFENSE MARKET KEY TAKEAWAYS

  • Current Market Size: USD 15.59 Billion in 2024
  • CAGR: 6.10%
  • Forecast Period: 2025-2033
  • South Korea is advancing military capabilities through modernization initiatives, including USD 4 Billion in government defense upgrades in 2024.
  • Cybersecurity is a key focus with 1.62 Million daily cyberattack attempts noted in 2023, mostly from North Korean sources.
  • International collaborations, including joint ventures like Hanwha Aerospace's missile production in Poland, are expanding export opportunities.
  • Domestic MRO and modernization projects, such as Korean Air's KRW 961.3 Billion helicopter upgrade, bolster self-reliance.
  • The aerospace sector targets moon and Mars missions by 2032 and 2045 with a space budget exceeding KRW 1.5 trillion.

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MARKET GROWTH FACTORS

South Korea's aerospace & defense market benefits significantly from structured military modernization programs. In 2024, the government allocated USD 4 Billion for defense upgrades, including USD 2.35 Billion for advanced Ulsan-class frigates and USD 1.1 Billion for developing long-range air-to-air missiles for the KF-21 fighter. These initiatives aim to enhance defense readiness and position South Korea as a major player in next-generation defense across land and air domains.

Protecting critical military infrastructure from escalating cyber threats is another major growth factor. In 2023, the National Intelligence Service recorded 1.62 Million daily cyberattack attempts, with approximately 80% traced to North Korea. This has driven increased investments in digital security systems and secure communication networks within South Korea's defense strategy.

The country's aerospace ambitions also contribute to growth with targets for moon and Mars missions by 2032 and 2045, supported by a space budget exceeding KRW 1.5 trillion. This fosters public-private partnerships and robust R&D, driving forward a tech-driven, resilient aerospace and defense ecosystem.

MARKET SEGMENTATION

Analysis by Industry:

  • Manufacturing, Design, and Engineering: Strong domestic engineering capabilities and advanced R&D support aerospace and defense innovation. Companies like Korea Aerospace Industries (KAI) and Hanwha lead indigenous programs. Government initiatives encourage innovation, reducing foreign dependency and enhancing export potential.
  • Maintenance, Repair, and Overhaul: Local MRO capabilities are expanding due to increasing military and commercial aircraft numbers. Facilities by Korean Air and KAI offer lifecycle services and modernizations. Government promotes localizing defense logistics, boosting technical skills and exports.

Analysis by Type:

  • Aerospace: Involves aircraft development, satellite programs, and space exploration with initiatives like the KF-21 fighter and Small Satellite Launch Vehicle (SSLV). Focus is on dual-use systems to enhance competitiveness and global reach.
  • Defense: Driven by regional threats and military modernization strategies. Includes missile systems, unmanned platforms, and battlefield solutions. Export growth to countries such as Poland and UAE reflects rising credibility. Procurement localization encourages innovation.

REGIONAL INSIGHTS

The Seoul Capital Area dominates South Korea’s aerospace and defense sector, acting as the administrative and industrial hub. It hosts key aerospace companies, think tanks, government agencies, and R&D institutes. This proximity accelerates project execution, regulatory approvals, and innovation, fostering growth for domestic and export markets. The exact market share and CAGR data by region are not provided in the source.

RECENT DEVELOPMENTS & NEWS

  • April 2025: South Korea and the UAE signed an MoU to hold bilateral Air Force meetings every six months, including joint training and KF-21 cooperation.
  • March 2025: Shield AI partnered with Korea Aerospace Industries (KAI) to integrate AI autonomy suites into manned-unmanned teaming programs.
  • March 2025: Hanwha Aerospace announced a USD 2.5 Billion rights offering to expand defense and maritime production, supporting overseas weapons manufacturing and UAV engine R&D.

KEY PLAYERS

  • Hanwha Aerospace
  • Korea Aerospace Industries
  • LIG Nex1
  • Hyundai Rotem
  • Hyundai WIA
  • Korea Aerospace Research Institute
  • Lockheed Martin
  • Boeing
  • Raytheon Technologies
  • BAE Systems
  • Airbus Defense and Space

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

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