(C) Military Watch Magazine
RIYADH — South Korea’s defense industry is shifting its strategy from individual corporate excellence to a unified "Team Korea" approach. At the World Defense Show (WDS) 2026 in Riyadh, major defense contractors including HD Hyundai, Hanwha Ocean, and LIG Nex1 emphasized that their path to winning contracts in Saudi Arabia—the world's second-largest defense market—lies in deep-rooted cooperation with small and medium-sized enterprise (SME) partners.
Synergy as a Competitive Edge
"Building a single naval vessel requires collaboration with over 250 partner companies," said Park Yong-yeol, Head of Naval & Special Ship Business Unit at HD Hyundai Heavy Industries. He stressed that the synergy between shipbuilders and equipment manufacturers is the "key" to unlocking the Saudi market, particularly for upcoming frigate bids.
This sentiment was echoed by supply chain partners. Kim Yong-dae, CEO of MarineWorks, noted that the success of conglomerates and SMEs is inextricably linked, citing their previous joint success in supplying navigation equipment to the Peruvian Navy.
Aligning with Saudi Vision 2030
The push for collaboration is not just a choice, but a strategic necessity. Under Saudi Vision 2030, the Kingdom aims to localize over 50% of its military spending. To meet these high localization requirements, Korean giants are signing Memorandums of Understanding (MOUs) to establish local production bases and supply chains alongside their trusted subcontractors.
Eo Seong-cheol, President of Hanwha Ocean’s Special Ship Business, highlighted that localization is especially critical for Maintenance, Repair, and Overhaul (MRO) services for submarines. "Our Korean partners are sincere in their commitment, and together, we can meet the localization ratios Saudi Arabia desires," Eo stated.
A Unified Front
LIG Nex1 demonstrated this unity by hosting a joint exhibition hall for the "A1 Society," a council of its partner companies. Having already exported the Cheongung-II (M-SAM) to Saudi Arabia, the firm is now leveraging its SME network to secure further orders for multi-layered air defense systems.
The South Korean government is also bolstering these efforts. Defense Minister Ahn Kyu-back, attending WDS, held meetings with SME representatives to pledge administrative and diplomatic support, ensuring that "K-Defense" remains a collaborative global powerhouse.
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