South Korea Sees a Path Into NATO's 1.5 Trillion Won Defense Market

[Financial News, Ankara, Turkey = Reporter Seong Seok-woo] President Lee Jae-myung is stepping up sales diplomacy to expand the K-defense industry into European markets on the occasion of the North Atlantic Treaty Organization (NATO) summit. South Korea will begin negotiations on a Korea-NATO Basic Procurement Agreement to lay the groundwork for participating in the alliance's joint procurement market, which is expected to be worth 15 trillion won a year. It will also join a new multinational cooperation project in the defense materials sector.
According to the Blue House on the 8th, local time, Wi Sung-lac, Director of the Office of National Security, said at a briefing on the first day of the NATO summit in Ankara, Turkey, on the 7th that "following a meeting with the NATO secretary-general, the two sides announced the start of negotiations for the Korea-NATO Basic Procurement Agreement."
Wi explained that "this agreement sets out the legal and administrative matters needed for logistics, defense cooperation, and procurement contracts between NATO and partner countries." He added that "once the agreement is signed, it will create an institutional foundation for our companies to enter NATO's joint procurement market, which is expected to be worth 15 trillion won a year."
South Korea's role in NATO multinational cooperation projects has also expanded. In addition to its existing participation in ammunition and space projects, South Korea will newly join as an observer in a key defense materials project. The Blue House expects this to strengthen interoperability with NATO standards and broaden the path for Korean companies to enter NATO's defense market.
Lee also pledged comprehensive support worth $100 million for Ukraine. However, a senior Blue House official said, "We do not provide lethal weapons."
On the same day, Lee held a brief meeting with Canadian Prime Minister Mark Carney and discussed ways to expand cooperation between the two countries in areas such as Artificial Intelligence (AI). The meeting drew attention because it came shortly after South Korea lost out in Canada's submarine procurement project. The Blue House said Canada showed exceptional courtesy and explained the selection result to Lee in advance.
Lee also continued bilateral meetings with NATO member state leaders on the day. In his opening remarks, Lee said, "The Republic of Korea remembers and appreciates the fact that Norway provided medical support during the Korean War, even before it established diplomatic relations with South Korea." Lee congratulated Norway on reaching the quarterfinals of the FIFA World Cup and on its submarine project selection. During the exchange, he even mimicked the rowing celebration shown in a promotional video for the Norway national football team, prompting laughter from those in the room.
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