Forecast: General Government Procurement on Defence in South Korea

The general government procurement on defense in South Korea has shown a declining trend from 2013 to 2023, dropping from 12.57 units in 2013 to 11.15 in 2023. Year-on-year variations highlight periods of sharper declines, particularly between 2015 and 2017, followed by a relatively steadier trend with occasional slight increases, like in 2018. The Compound Annual Growth Rate (CAGR) averaged -0.86% from 2018 to 2023, indicating a gradual but consistent decrease in defense procurement spending.

Looking ahead from 2024 to 2028, the forecast suggests the downward trend will continue. The procurement value is expected to decrease to 10.76 units by 2028, driven by an anticipated CAGR of -0.57%. This forecast underscores a strategic shift or budgetary constraints within South Korea's defense spending framework.

Future trends to watch for include:

• Impact of geopolitical developments in the region on defense budgets.
• Technological advancements reducing costs or shifting spending priorities.
• Potential policy changes in response to economic conditions or security needs.