EU’s SAFE Program Reshapes Defense Procurement Landscape, Impacting Korean Exports

Summary – The EU’s new Strategic Autonomy through Favoring European (SAFE) program prioritizes European defense firms, influencing Korea’s weapon sales in Poland and other markets.,

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The EU’s Strategic Autonomy through Favoring European (SAFE) program is significantly changing the defense procurement landscape within the European Union. Designed to bolster the competitiveness of European defense firms, the SAFE program emphasizes prioritizing defense projects and contracts for companies based within the EU.

This shift has considerable implications for international defense exporters, particularly affecting countries like South Korea. Traditionally, Korean defense firms have been substantial suppliers to markets such as Poland and other European nations. However, with the introduction of SAFE, there is an increased preference for European-made defense equipment, which may reduce the demand for Korean imports in these markets.

Key impacts of the SAFE program include:

• Increased market opportunities for EU-based defense companies.
• Potential decline in export volumes for non-European defense manufacturers such as those from South Korea.
• Encouragement for European countries to develop and sustain their own defense industries.
• A need for foreign defense exporters to reassess market strategies within the EU.

Consequently, South Korean defense firms might need to explore collaborative partnerships with European companies or focus on alternative markets outside the EU to sustain and grow their export footprints.

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