the conflict in Ukraine led to an increase in arms exports from South Korea – Kommersant

Information Agency Nikkei drew attention to the publication of quarterly reports from the leading South Korean ammunition manufacturer Poongsan. After reporting a 19.5% increase in operating profit to 59 billion won ($44 million), the company also reported a sharp increase in its exports of its products – by 66.9% compared to the same period last year.

The main buyers of the products of the South Korean corporation are the United States, the countries of the Middle East and Europe. According to experts, the growth is mainly due to the shortage of ammunition that has arisen in Europe due to large-scale supplies to Ukraine.

“Poongsan appears to be in for a record year in terms of arms sales as the export market has expanded to Europe in addition to the US and the Middle East,” said Kiwoom Securities analyst Lee Jong-hyun. defense business (corporations.— “b”) is noticeably ahead of domestic business.”

The company has already stated that it intends to increase production and achieve NATO certification of its products, which will help to obtain new orders.

However, the company’s plans may be hindered by political considerations. As recently reported The Washington Post, the South Korean authorities are still resisting Washington’s persistent requests to allow arms supplies to the conflict zone. So, for example, according to a member of the South Korean Parliament from the ruling People’s Power party and former military man Sin Won-sik, last year the same Poongsan sold 100,000 artillery shells to the United States, but with the condition that they would only be used US armed forces.

Andrey Kelekeyev