Korea's defense industry is losing steam due to the government's excessive regulation. As the government requires the industry to develop world-class technologies within a short period of time and imposes restrictions if it fails to comply, an increasing number of defense contractors are taking a wait-and-see attitude without going for innovative R&D.
For defense companies here in Korea, the failure to develop new weapons is like being stigmatized forever. In such cases, they have to return 100 percent of the money they received, as well as losing the chance to join the government's future biddings for new weapon development.
Against this backdrop, their receipts of overseas orders fell to US$2.54 billion last year, down 27 percent from $3.49 billion a year ago. Due to the government's restrictions, home-grown defense contractors were given low scores in overseas bidding races.
The profitability of local defense companies also plunged to a half of that of global rivals. The operating profit-to-sales ratio of Lockheed Martin, for example, stood at 11.5 percent last year, far higher than those of Hanwha Techwin (4.2%) and LIG Nex1 (4.7%).
A group of South Korean insurers will invest 69 billion won ($60 million) in 29-year senior debt secured on Australia’s National Archives Preservation Facility in Canberra, attracted to its long maturity, as they are keen to extend asset durations ahead&hellip
The Construction Workers Mutual Aid Association (CWMAA) will acquire a language center building of the University of New South Wales (UNSW) in Sydney for A$71 million ($56 million), jointly with a South Korean insurance company. CWMAA, with $2.8 billion in&hellip
South Korean banks and institutional investors will provide $140 million in syndicated loans to a US gas-fired plant project in Pennsylvania, part of $460 million loans originated by BNP Paribas to build the power plant. Of the $140 million loans,&hellip