The United States is increasingly turning to South Korea to alleviate ammunition shortages caused by ongoing conflicts in the Middle East and Ukraine, potentially accelerating Seoul’s integration into the US defense industrial base. Experts say that prolonged wars in Iran and Ukraine have heightened concerns over America’s ability to replenish military stockpiles swiftly, opening doors for South Korea’s defense industry to expand its footprint in the US market.
Jang Won-joon, a defense science professor at Jeonbuk National University, noted that conflicts involving Iran and Russia’s invasion of Ukraine have exposed vulnerabilities in the US’s domestic defense production capabilities. Consequently, the US is seeking closer partnerships with allies for munitions, missile production, and shipbuilding, with South Korea emerging as a critical collaborator. Jang highlighted Seoul’s proposed US$150 billion initiative to revive American shipbuilding—led by Korean shipbuilders HD Hyundai, Samsung Heavy Industries, and Hyundai Ocean—as a potential blueprint for defense cooperation that the US might encourage other allies to emulate.
South Korea’s Hanwha Aerospace has rapidly expanded its engagement in the US defense sector amid ammunition supply bottlenecks. The company announced a US$2.2 billion investment over seven years to establish a 155mm artillery shell production facility on a US Army installation in Arkansas. The vertically integrated plant will handle all aspects of shell manufacturing, from raw materials to finished products, addressing the US shortage caused in large part by the increased demand from the war in Ukraine.
Last month, Hanwha Defence USA, the company’s American subsidiary, inked a contract with the US Army to provide six K9 Mobile Howitzer artillery prototypes, in a deal valued at about US$100 million. The contract could rise to US$263 million if an additional 12 units are ordered. Hanwha is also developing a facility in Opelika, Alabama, dedicated to assembling, integrating, and testing prototypes.
Michael Coulter, head of Hanwha Defence USA, stated the company’s goal to advance US ammunition capabilities while deepening defense collaboration between the two nations.
Other South Korean defense firms are also attempting to capitalize on the global demand. LIG Defence & Aerospace is looking to expand its presence in the interceptor missile market, despite limitations in domestic manufacturing capacity.
However, industry experts caution that US supply shortages do not automatically guarantee contracts for foreign companies. Foreign suppliers must navigate significant barriers, including "Buy American" procurement rules, stringent technology security regulations, and rigorous US military certification processes. Kim Mi-jung, a research fellow specializing in defense industry economics, emphasized that establishing US-based subsidiaries is crucial for South Korean companies to overcome these hurdles and gain access to the American defense market.
Kim further noted that South Korea’s sustained munitions production and ample reserves—driven by the persistent threat from North Korea—position the country as nearly the sole viable partner for the US to modernize and rapidly expand its ammunition manufacturing capacity. This cooperation, she added, would bolster Seoul’s leverage in future trade and investment discussions with Washington.
Doo Jin-ho, a research fellow at the Institute for Far Eastern Studies at Kyungnam University, suggested that the Hanwha agreement could lead to broader collaboration encompassing maritime, aerial, missile, drone, and AI-based weapons systems. He described South Korea as effectively the only arms supplier capable of promptly replenishing US military stockpiles given the two nations’ high degree of interoperability, especially regarding 155mm artillery shells.
Doo also highlighted that Washington might turn to other South Korean defense platforms such as Hyundai Rotem’s K2 main battle tanks and LIG Defence & Aerospace’s Cheongung interceptor missiles to offset shortages in Patriot missile systems.
Overall, analysts believe expanding defense cooperation would strengthen the US-South Korea alliance, while affording Seoul notable opportunities to enhance its role in the global defense market.