Germany Becomes a Battleground for Defense Firms as Military Spending Surges; Korean Companies Rush In

[Financial News] Germany, which has sharply increased its defense budget since Russia's invasion of Ukraine, is emerging as a battleground for global defense companies.
According to the Financial Times (FT) on the 26th local time, companies including Hanwha Group's aerospace unit, Norway's Kongsberg Gruppen, and Finnish satellite data startup ICEYE have opened offices and established a presence in Germany over the past year.
Alex Nelson Wong, chief strategy officer at Hanwha Group, said, "The scale of the business opportunity meant we needed a permanent base." He added, "To carry out our strategy, we had to hire people who know the German defense market well." Wong explained that although Hanwha has long exported to markets around the world, it is now receiving inquiries from partners asking it to transfer production capacity.
Electro Optic Systems (EOS), which produces high-precision lasers, is even considering moving its headquarters from Canberra, Indigenous Australians, to Europe, with Germany among the candidates. Andreas Schuber, CEO of EOS, said, "We plan to move our headquarters from Indigenous Australians to Central Europe." He added, "The final destination has not been decided, but the Netherlands and Germany are the most likely options."
Interest from defense companies in Germany is closely tied to the country's rising military spending. Its core defense budget is set to jump 32.6% from 82.2 billion euros this year to around 109 billion euros next year. Over the next five years, Germany's defense budget is expected to exceed 700 billion euros. Nils Lange, a manager at market-entry consultancy Rasmussen Global, said, "Everyone wants a slice of this pie."
[email protected] Hong Chaewan Reporter