South Korea Defence and Security Report Q1 2009

Executive Summary ....................5
South Korea Security SWOT................................ 6
South Korea Defence Industry SWOT.................. 6
South Korea Political SWOT ............................... 7
South Korea Economic SWOT ............................. 7
South Korea Business Environment SWOT.......... 8
Political Overview........................9
Security Risk Analysis..............12
BMI’s Security Ratings .............. 12
Table: Asia Pacific Regional Security Ratings................................ 12
Table: Asia Pacific State Vulnerability To Terrorism Index ........... 13
Composite............................. 13
Regional rank....................... 13
Trend....... 13
Danger rating....................... 13
Regional Security: North And South Asia ............... 13
South Korea’s Security Risk....... 16
Conflict Risk ......................... 16
Terrorism Risk ...................... 16
Physical Safety Risk.............. 16
Security Overview .....................17
Internal Security Situation ................................. 17
External Security Situation ................................ 17
Armed Forces And Government Spending ..........20
Armed Forces ....................... 20
Table: Regional Armed Forces, 2007 (including conscripted, ‘000) ............................ 20
International Deployments................................. 22
Table: South Korea’s Deployments.................... 22
Weapons Of Mass Destruction........................... 23
Market Structure........................24
Arms Trade Overview........... 25
Industry Trends And Developments ................... 26
Procurement Trends And Developments............ 28
Competitive Landscape......... 30
Table: South Korea’s Defence Sector Key Players ........................ 31
Industry Forecast Scenario .......32
Industry Future ..................... 33
Table: South Korea’s Armed Forces, 2005-2013 (‘000 personnel) .............................. 34
Table: South Korea’s Government Defence Expenditure, 2005-2013........................... 34
Key Risks To BMI’s Forecast Scenario.............. 34
Macroeconomic Forecast .................................. 35
Table: South Korea – Macroeconomic Activity, 2006-2013............ 36
Company Profiles......................37
Doosan Heavy Industries & Construction ......... 37
DSME................................... 38
Korea Aerospace Industries............................... 39
Samsung Thales .................... 40
Country Snapshot: South Korea Demographic Data .......................41
Section 1: Population............ 41
Table: Demographic Indicators, 2005-2030...... 41
Table: Rural/Urban Breakdown, 2005-2030 ..... 42
Section 2: Education And Healthcare................ 42
Table: Education, 2002-2005 ............................ 42
Table: Vital Statistics, 2005-2030...................... 42
Section 3: Labour Market And Spending Power ............................. 43
Table: Employment Indicators, 2001-2006........ 43
Table: Consumer Expenditure, 2000-2012 (US$) ........................... 43
Table: Average Annual Wages, 2000-2012........ 44
BMI Forecast Modelling............45
How We Generate Our Industry Forecasts ........ 45
Defence Industry................... 45
Sources ......... 46