engine

June 19 (Asia Today) — South Korea is seeking to transform its defense industry into a national growth engine by integrating military procurement, weapons exports, advanced technology and industrial policy, government and industry officials said Friday.

Officials at a public-private seminar in Seoul rejected the long-standing argument that growing foreign orders could divert production capacity from the South Korean military and delay domestic weapons deliveries.

Instead, they said an analysis of about 2,000 South Korean defense companies found that exports increased factory utilization, encouraged investment in research and production facilities and eventually reduced manufacturing costs.

The findings were presented at a seminar titled “A New Leap Forward in Acquisition and the Defense Industry,” held at the Fairmont Ambassador Seoul in the city’s Yeouido financial district.

The Defense Acquisition Program Administration organized the event as it marked the 20th anniversary of its establishment.

Participants included lawmakers, officials from the defense, industry, science and small-business ministries, defense company executives and academic researchers.

They called for an end to treating military procurement and defense exports as separate policy areas.

Lee Yong-cheol, minister of the Defense Acquisition Program Administration, said South Korea’s annual defense exports had grown from about $250 million when the agency was established to $15.4 billion last year.

“Defense exports are no longer merely a supplement to domestic military procurement,” Lee said. “They have become a central growth engine driving the Republic of Korea as a whole.”

Lee said South Korea also needed to move beyond selling individual weapons.

He proposed combining weapons with energy systems, infrastructure, maintenance, repair and overhaul services and other forms of industrial cooperation.

“The era of selling weapons as stand-alone products is over,” Lee said. “We will transform the K-defense paradigm through cross-industry package cooperation.”

Lawmakers from South Korea’s governing and opposition parties pledged bipartisan legislative support for faster procurement and stronger financing for small and midsized defense companies.

They said a system that can take about 15 years to plan, develop and deploy a weapon is not suitable for an era in which artificial intelligence, drones and robotic systems evolve rapidly.

Participants also cited research indicating that financial instability among smaller suppliers, rather than export production, was a more important cause of delivery delays.

They called for expanded government-backed financing to prevent small manufacturers in the defense supply chain from being overwhelmed by debt and working-capital shortages.

Study links exports to stronger domestic production

South Korea’s defense industry has long debated whether large export contracts weaken or strengthen the country’s own military procurement.

Critics have warned that foreign orders could occupy production lines and delay the delivery of weapons to South Korean forces.

Supporters have argued that exports create economies of scale, preserve production capacity and lower the price paid by the South Korean military.

Research presented at Friday’s seminar supported the second view.

A team led by researchers from Myongji University analyzed data from about 2,000 South Korean defense-related companies.

The analysis found that increasing exports produced an immediate rise in factory utilization. Higher utilization was then associated with greater investment in research, development and production facilities.

Researchers said the benefits became more evident about three years after an export increase.

The analysis identified improvements in operating profit, lower production costs and greater independence in critical technologies after that period.

Repeated production also allowed factory workers and engineers to improve their skills and reduce defects, a process commonly described as a learning effect.

At the same time, producing weapons in larger quantities spread fixed development and manufacturing expenses across more units.

Researchers said those effects increased the competitiveness of South Korean products in foreign markets while potentially lowering the cost of weapons purchased by the South Korean military.

Industry experts cited South Korea’s large exports of K2 tanks and K9 self-propelled howitzers to Poland as an example.

They said the contracts increased domestic production, helped reduce unit costs and accelerated work on upgraded models.

Kim Myung-keun, an executive at Hyundai Rotem, said the company achieved economies of scale after receiving Poland’s large K2 tank order.

“Mass production lowered costs, reduced the acquisition cost for our own military and accelerated the development of upgraded models,” Kim said.

Yoon Byung-jo, an executive at SNT Motiv, said repeated production generated through large export orders also strengthened technical capabilities on factory floors.

“The learning effect accumulated by technicians during repeated production is the most powerful tool for reducing defects in critical components and increasing technological independence and localization,” Yoon said.

Lee Jung-hyun, a Myongji University professor involved in the study, said the analysis did not identify export volume as the principal cause of delayed deliveries.

“The real causes of delivery delays were companies’ debt ratios and financial soundness,” Lee said. “Exports instead improved operating profits and technological capabilities after a time lag of about three years.”

Lee said the government should strengthen the financial stability of smaller defense companies rather than restrict exports.

Officials seek to shorten 15-year procurement cycle

Government officials said South Korea’s traditional weapons acquisition process is too slow to keep pace with civilian advances in AI, drones, robots and human-machine teaming systems.

Weapons programs can take about 15 years from initial planning through development and operational deployment.

Officials said that schedule risks delivering technology that has already become outdated by the time it reaches military units.

Won Jong-dae, an assistant defense minister, said the existing system had become a national security obstacle.

“In the age of AI and drones, an acquisition process that takes 15 years is an impediment to security,” Won said.

He said the government would seek legislation tentatively called the Advanced Defense Capabilities Projects Act to shorten the process from initial requirements planning through deployment.

Kim Seong-su, a senior research and development official at the Science and Technology Ministry, said innovation in the civilian sector was advancing more quickly than military technology.

Kim called for an adaptive research and development system that would allow mature commercial technologies to be introduced into the military without passing through the full conventional development process.

The acquisition agency said it plans to expand rapid-introduction programs, particularly for drones and AI-related technologies.

The programs would allow the military to test and deploy promising civilian products more quickly while making adjustments based on operational experience.

Jeong Hwan, chief executive of infrared sensor manufacturer i3system, said smaller companies with advanced commercial technologies often cannot withstand the military’s complicated testing requirements and lengthy acquisition schedule.

He urged the government to make rapid acquisition programs more flexible and accessible to technology companies.

Financial support sought for smaller suppliers

Officials said South Korea must also strengthen small and midsized companies that produce components and materials for major weapons manufacturers.

Park Yong-soon, a senior official at the Ministry of SMEs and Startups, said the research presented Friday showed that financial weakness was a major source of supply-chain disruption.

Park said the government would shift policy toward stronger financial support for vulnerable suppliers and seek to increase the share of domestic defense revenue generated by small companies.

Smaller companies currently account for about 18% of South Korean defense industry sales. The government aims to raise the proportion to 25%.

Officials said those businesses can face severe cash-flow pressures because defense contracts require lengthy development, testing and certification before companies receive full payment.

The problem can become more serious when a small supplier must expand production rapidly to meet a major overseas order.

Park said the government must ensure that otherwise competitive companies do not collapse because they cannot obtain sufficient operating capital.

Park Dong-il, a senior official at the Industry Ministry, also warned that South Korea’s export portfolio remained concentrated in ground weapons.

More than 60% of the country’s defense exports come from land-based systems, he said.

Park said the government would work to diversify the industry into aerospace, next-generation satellites and advanced naval vessels while strengthening the domestic manufacturing and component ecosystem.

South Korea plans national security export packages

The acquisition agency said future export efforts would go beyond individual tanks, aircraft or artillery systems.

The government plans to package defense products with energy projects, transportation and industrial infrastructure, information and communications technology, maintenance services and technology transfers.

Officials described the approach as exporting an integrated security platform rather than a single weapon.

They cited Poland as a model.

South Korean arms agreements with Warsaw have included not only K2 tanks, K9 howitzers and other weapon systems but also plans for local production, technology cooperation, training and long-term maintenance.

An industry official said future transactions could involve building a partner country’s broader security and industrial system.

“The business will no longer be about exporting one tank,” the official said. “It will become a platform business that exports an entire national security system.”

Such packages can help importing countries create domestic jobs, develop supply chains and maintain weapons locally.

They can also give South Korean companies access to long-term revenue from training, spare parts, upgrades and depot-level maintenance after the initial sale.

The approach, however, requires coordination among several ministries because infrastructure, export financing and industrial cooperation extend beyond the authority of the acquisition agency.

Kim Il-dong, deputy minister of the Defense Acquisition Program Administration, said procurement and exports should be viewed as two sides of the same coin.

Kim said the acquisition agency could not achieve South Korea’s defense industry goals on its own.

He called for coordinated action by the defense, science, industry and small-business ministries to develop the sector as a strategic national industry.

Seoul targets 5% share of global defense market

The Defense Acquisition Program Administration said it aims to increase South Korea’s share of the global defense market to at least 5% and establish the country as one of the world’s four largest defense exporters.

Officials said South Korea’s defense industry had already approached the global top five based on its 2025 export performance.

Future growth will depend on moving beyond the country’s current strength in tanks, armored vehicles and artillery, they said.

The government plans to support companies working in AI, space systems, drones, advanced ships and autonomous and human-machine teaming technologies.

It also wants to foster globally competitive defense startups and companies capable of reaching valuations of more than $1 billion.

Officials and industry representatives said South Korea’s defense sector had completed an initial period of quantitative growth and now needed to focus on technology, productivity and supply-chain resilience.

“The past 20 years were a period of quantitative growth in which K-defense built weapons capabilities from the ground up,” seminar participants said. “The next 20 years should be remembered as an era of qualitative growth centered on AI, space, drones and unmanned systems.”

They said military procurement and the defense industry should no longer be treated as separate areas.

Instead, both should be viewed as parts of a single strategic industry supporting South Korea’s security, technological development and economic growth.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260619010006831

Before answering this question directly, it’s important to point out that not everyone views the new rules in such a negative way.

There is an acceptance in F1 that qualifying has been significantly negatively affected, in terms of the driving experience of being on the limit.

Efforts have already been made to address that up to a point this year, and larger steps are in the making for next year.

At the same time, most senior figures in F1 – including some of the drivers – agree that there has been a positive effect on the racing, even if some of the increased number of overtakes that have been seen can be argued to be artificial and down to offsets between states of charge.

TV figures over the first three races were up by more than 20% – all three of Australia, China and Japan had significant increases. Miami’s are not available yet.

Now, as for the genesis of the new regulations, the target when talks started five or so years ago was to attract more manufacturers.

At the time, the direction of road-car technology was firmly electric, so it was decided in concert with the manufacturers to increase the amount of electrification.

A nominal 50-50 split between internal combustion and electric was agreed. Fully sustainable, carbon-neutral fuels were added for further environmental credibility.

The MGU-H, a part of the hybrid system that recovered energy from the turbo, was removed. The reasoning being it was complex and expensive – and therefore hard for new manufacturers to compete with existing ones – and not road relevant.

Following the announcement of those rules, first Audi committed to F1. Soon afterwards, Ford and General Motors did the same, and Honda reversed its decision to quit.

Had the rules not changed, F1 now would have a maximum of three manufacturers or possibly only two, Mercedes and Ferrari, if Renault had gone ahead with its withdrawal.

Instead, it has six.

The problems started when the teams started to look at what a near 50-50 energy split with an engine devoid of an MGU-H meant in terms of operating the cars.

Very early on, at least by 2023, there were warnings that the cars would be energy starved.

Energy recovery from the front axle could have solved this, but this was rejected on the basis that it could give Audi an advantage as it had experience in it from world endurance racing.

The result was a series of sticking-plaster solutions – such as active aerodynamics – that only tickled with the fundamental problem.

It’s hard to get a definitive answer as to why someone in authority did not ask everyone to stop, step back for a minute, look at the big picture, and ask whether the 50-50 split was really so important. And whether the sport should change tack. Clearly, that was a failure.

So now the rules have to be amended. And solutions that could have been introduced before 2026 – such as altering the energy split and making it more in favour of the internal combustion engine – are now likely to be introduced for 2027.

Parallel to that, talks are now ongoing on what comes next – from either 2030 or 2031.

The trajectory of road cars has changed. Electrification is still coming, but – it seems – not to the same degree or at the same speed as was thought five or so years ago.

In F1, a reversal away from electrification to some degree is inevitable. But how much remains to be seen.

A naturally aspirated engine – most likely a V8 – with token hybrid is being pushed by FIA president Mohammed Ben Sulayem.

But for various reasons that exact solution may not be acceptable to all stakeholders, nor the panacea its proponents claim. Negotiations are ongoing.

FOUND in a small seaside town in Wales is a railway that was said to be the inspiration for Thomas the Tank Engine.

Talyllyn Railway is celebrating its 75th anniversary this weekend to acknowledge the day when it became a ‘world first’, not to mention that children can enjoy hopping aboard for as little as £5.

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The Talyllyn Railway in the Welsh county of Gwynedd was saved from closure in 1951 by volunteer train enthusiasts.

This was the first time in history that a railway had been taken over by volunteers, and now it’s celebrating 75 years of being ‘The World’s First Preserved Railway’.

One of the very first railway volunteers was actually children’s author Rev Wilbert Awdry who was the creator of beloved character Thomas the Tank Engine.

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It’s said that Wilbert Awdry based some of his stories on his experiences while working at the railway.

One tale in one of the books is from the time when Wilbert left a colleague, the refreshment lady behind at Abergynolwyn which is at the far end of the line.

Railway historian Tim Dunn said the Talyllyn Railway had made its way into a number of Thomas the Tank Engine books.

He even called the railway the “spiritual home” of Thomas the Tank Engine.

The railway is open seasonally with train journeys throughout spring and summer.

The best part is that children can visit the Talyllyn Railway now and hop onboard for as little as £5 with a ‘Child Explorer’ ticket.

An ‘Adult Explorer’ fare starts from £29 – if you fancy reserving whole compartments this is from £155 (which seats up to six passengers).

The one-hour return journeys start from Tywyn Wharf and head to Nant Gwernol stopping in-between at Pendre, Rhydyronen, Brynglas, Dolgoch and Abergynolwyn.

You can even add an Afternoon Tea or Welsh Cream Tea Package to your experience.

On arrival at the Abergynolwyn stop, the teas are set up with fresh scones, cream and jam with a pot of fresh pot of tea or coffee – these start from an extra £6.50 per person.

On-site, the railway has a Narrow Gauge Railway Museum with a collection of items – some of which are 200 years old.

There’s even a special collection dedicated to the author of Thomas the Tank Engine.

The King’s Café and Quarryman’s Caban at Tywyn Wharf Station are open for breakfast, Sunday lunches, takeaways – there’s even a licenced bar.

The railway is a favourite attraction amongst its visitors with over 1,200 five-star reviews on Tripadvisor.

One visitor even said: “I visited for the first time yesterday. No exaggeration, it was the best day of my life.”

Another added: “My wife and I took a trip to this historic railway during their Awdry Extravaganza weekend and loved it. The trip up the valley is beautiful on a sunny day.”

It holds events throughout the year too – and this weekend the railway is holding its 75th Anniversary Gala to celebrate Talyllyn Railway being saved by volunteers.

Across the weekend, special locomotives are taking to the tracks, like an overnight steam train which will return to the railway for the first time in 11 years.

Trains from various eras like the 1950s, 60s, 70s, 80s all the way to modern day will also be on display.

Other events include Sunset Specials which run on Wednesday and Sunday during spring bank holiday week between 6PM until 9PM for pretty views.

The ‘Railway Adventure’ event is where visitors can travel behind a historic steam locomotives. Guides explain how Talyllyn Railway got to be a world first, and delve into the early days of the Preservation Pioneers.

During ‘The Slate Trail’, passengers can experience a train journey inside a Victorian-era carriage. Tickets for these two experience start from £23.75 for children and £47.50 for adults.