South Korean defense firms are rapidly gaining ground in the global arms market after their Cheongung-II air defense system demonstrated impressive performance in combat. The system intercepted 29 out of 30 missiles and drones during Iran's recent attack on the UAE, at roughly one-quarter the cost of U.S. Patriot interceptors. This success has drawn attention from military analysts and politicians across the Middle East and Asia.

Several nations are seeking alternatives as American defense manufacturers struggle with production backlogs. Countries have waited years for air defense systems, creating an opening for South Korean weapons that are both cheaper and faster to deliver. South Korea has become the second-largest supplier of weapons systems to NATO countries in Europe, after the United States, according to the Stockholm International Peace Research Institute.

Revenue for LIG Nex1 has grown dramatically, with export sales jumping from about $55 million in 2021 to $921.8 million by 2025. Other South Korean defense manufacturers like Hanwha Aerospace have signed billions in new contracts with European nations. The appeal is straightforward: South Korean weapons systems cost less and can be delivered far more quickly than their American counterparts, while manufacturers are willing to build factories abroad and share technical knowledge.