Export Strategies for Small and Medium-Sized South Korean Defense Companies: Opportunities and Challenges for Domestic Firearm Manufacturers in the Global Market

This study systematically analyzed the challenges and opportunities faced by South Korean small and medium-sized defense companies—particularly firearms manufacturers—as they expand into global markets. It proposed strategic directions aimed at fostering sustainable growth and improving international competitiveness. (1) Background/Purpose: South Korea's defense industry, and specifically its SME firearms manufacturers, face complex barriers including international export regulations, localization requirements, and intense price competition. The study investigates how these firms can achieve sustainable growth in the global defense market. (2) Methodology/Approach: A comprehensive methodology combining an extensive literature review (SIPRI reports, DAPA data, ITAR and Wassenaar Arrangement guidelines), qualitative and quantitative market analysis, case studies of companies such as DASAN and S&T Motiv, stakeholder interviews, and SWOT/PESTLE frameworks was employed. The analysis covers 2013–2023 and projects trends for 2024–2029. (3) Findings: Supply chain optimization—through Semi-Knocked Down (SKD) models and local production—has proven effective for global market penetration while meeting localization requirements. Domestic South Korean companies consistently outperform global companies in compliance with Korean data protection and defense regulations. No significant correlation was found between revenue scale and protection/compliance levels. (4) Originality/Value: The study provides a robust, actionable framework for South Korean firearms manufacturers to navigate the global defense market, highlighting the need for technological differentiation, strategic partnerships, and alignment with international standards, including ESG integration.