EU’s SAFE Program Reshapes Defense Procurement, Challenging Korea’s Arms Sales in Europe

Summary – The EU’s Strategic Autonomy and Foreign Equipment (SAFE) program is set to prioritize European defense firms, impacting South Korea’s weapon sales in Poland and other member states amid growing competition.,

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The European Union (EU) has introduced the Strategic Autonomy and Foreign Equipment (SAFE) program, marking a crucial change in defense procurement practices among its member states. Launched in late 2025, SAFE aims to give priority to European defense manufacturers and limit reliance on non-European suppliers, thereby impacting international defense exporters such as South Korea.

Details of the SAFE Program

Finalized in December 2025, the SAFE program establishes a framework that restricts defense contracts awarded to non-European companies unless they comply with strict conditions involving technology transfer and participation in the European industrial base. The program covers all 27 EU member countries and applies immediately to current and forthcoming defense contracts.

This move is prompted by growing geopolitical tensions and the EU’s urgent need to reinforce its defense capabilities independently of external powers. SAFE focuses on prioritizing European manufacturers in sectors including advanced weapon systems, military vehicles, and aerospace technologies.

Key Entities Involved

• European Commission – The Directorate-General for Defence Industry and Space leads the drafting and enforcement of SAFE.
• Council of the European Union – Key decision-making body supporting the program.
• European Defence Agency (EDA) – Facilitates cooperation and harmonization of defense procurement standards among member states.

On the international front, South Korean defense companies such as Hanwha Defense and LIG Nex1 have been prominent contractors in Poland and other EU countries but now face increased competition and regulatory hurdles due to SAFE.

Implications for South Korea

Poland has accounted for nearly 20% of South Korea’s European defense exports since 2020, making it a vital market. However, SAFE implementation creates a challenging environment for South Korean firms, who must now pursue significant partnerships and technology collaborations with European companies to remain competitive.

South Korean officials have responded by expressing willingness to engage diplomatically and adapt to the new framework. Industry representatives emphasize the importance of joint ventures and cooperation with European partners to sustain market presence in the EU.

Reactions Within Europe

EU member states broadly support the SAFE program as part of their commitment to strategic autonomy in defense. Poland, while reliant on advanced defense imports, shows cautious approval, mindful of balancing internal security needs with EU objectives and alliance commitments.

Commissioner Thierry Breton highlighted the program’s objective of ensuring “European sovereignty in defense supply chains” and fostering “homegrown technology development.”

Future Outlook

1. Monitoring and Evaluation: The EU will monitor the implementation of SAFE throughout 2026, assessing its impact on strategic autonomy.
2. Diplomatic Engagement: South Korea and the EU are expected to continue dialogues aimed at clarifying SAFE’s provisions and exploring exceptions or partnership opportunities.
3. Industry Adaptation: South Korean defense firms are likely to seek joint ventures and technology-sharing arrangements to navigate the new procurement landscape.
4. European Collaboration: The European Defence Agency will promote innovation and coordination among member states to enhance the EU’s defense industry.

In summary, the SAFE program signals a major shift toward European self-sufficiency in defense procurement and will significantly affect international defense trade dynamics, including South Korea’s arms sales in Europe.

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