EU’s New Defense Policy Threatens South Korea’s Growing Arms Sales in Europe

The European Union’s new defense initiative, the Strategic Alliance for European Defense (SAFE) program, threatens to significantly impact South Korea’s growing arms sales within Europe. Announced in late 2025, this program aims to prioritize defense procurement within EU member states, potentially limiting opportunities for external suppliers.

Impact on South Korea’s Defense Industry

South Korea has made considerable advances in Europe’s defense sector, securing important contracts to supply military equipment like armored vehicles and missile systems to countries including Poland. Poland, in particular, has been instrumental in purchasing advanced South Korean weaponry to modernize its military forces amidst increasing regional tensions.

Purpose and Goals of the SAFE Program

The SAFE initiative focuses on:

• Encouraging EU member states to purchase from domestic European defense firms.
• Enhancing Europe’s strategic autonomy and reducing reliance on external military hardware suppliers.
• Strengthening the regional defense industry through economic nationalism and regional cooperation.

Challenges for South Korean Defense Manufacturers

Under this new regime, South Korean companies may face:

1. Disruption of existing contracts due to procurement preferences shifting toward European firms.
2. Complications in securing new contracts within the EU defense market.
3. The need to reconsider market strategies and possibly establish joint ventures with European companies.

An official from a leading South Korean defense company described the program as a “game-changer” that forces a strategic rethink of their presence in Europe.

Poland’s Position

Though Poland supports the SAFE program with caution, it remains committed to modernizing its armed forces using a diverse range of suppliers. This reflects the country’s effort to balance its national defense priorities with EU policy directives.

Broader Implications

The SAFE program signals a significant shift in how defense procurement will operate throughout Europe, emphasizing regional cooperation and securing supply chains. For South Korea, the challenge lies in adapting rapidly to sustain its foothold in the European defense market, which might include:

• Forming joint ventures with European firms.
• Targeting defense markets outside the European Union.

As global defense competition intensifies, the SAFE program illustrates Europe’s growing focus on self-reliance, creating new dynamics for international defense partners like South Korea.

About The Author