The South Korean defense market increased at a compound annual growth rate (CAGR) of 4.01% in 2011, to reach a total market value US $28.6 billion. Moreover, the South Korean defense market is expected to record a stronger CAGR of 7.11% through to 2017 to reach a value of US $43.3 billion.
The perceived threat of nuclear attack from neighbours North Korea will drive growth in defense expenditure, despite South Korea's military superiority.
The South Korean defense market is also set to benefit from the threat from both indigenous terrorist groups and international terrorist organizations such as Al-Qaeda, as well as economic growth, a military modernization plan, and a planned reduction in defense personnel.
The South Korean defense market is one of the largest defense expenditures in Southeast Asia and consistently features among the top 15 defense spenders in the world.
Within the South Korean homeland security market, the aviation security market is forecast to grow at a CAGR of 9.86% from an estimated value of US$439.4 million in 2012 to US$703.2 million in 2017, as a result of the development of new airports, increased air traffic, terminal expansion plans and the globalization of terror activities.
Cumulatively, the country is anticipated to spend a total of US $189.7 billion on defense during the years through to 2017, including US $66.7 billion on the acquisition of military hardware and technology.
For more information on the South Korean defense market, see the latest research: South Korean Defense Market Report
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