EU’s SAFE Program Reshapes Defense Procurement, Challenging Korea’s Market Position

Summary – The EU’s new SAFE program prioritizes European defense procurement, impacting South Korea’s weapon sales in Poland and other markets amid rising global defense competition.,

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The European Union has introduced the Strategic Autonomy through Forward-looking European Defense (SAFE) program, which aims to reshape defense procurement within its member states. This initiative prioritizes purchasing from European defense companies to strengthen regional security and foster innovation within its own market.

The SAFE program’s emphasis on European-based suppliers is expected to significantly impact foreign defense manufacturers, notably those from South Korea. South Korean defense firms have been successful in securing contracts in Poland and other European countries, but the new EU procurement guidelines may present challenges for continued market access.

Key implications of the SAFE program include:

• Increased preference for European-origin defense products in procurement decisions.
• Heightened competition for non-European defense exporters to retain or expand their market share.
• Potential shifts in defense partnerships and supply chains as European states seek greater autonomy.

As global defense competition intensifies, South Korea and other international suppliers may need to adapt their strategies to align with the EU’s evolving regulatory environment, possibly through local partnerships or enhanced technology transfers to European entities.

Overall, the SAFE program represents a strategic move by the EU to bolster its defense industry, which could have lasting effects on international defense trade dynamics, particularly for countries aiming to maintain a foothold in the European defense procurement landscape.

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