In 2022, South Korea’s defense export orders reached a record high of $17.3 billion. However, it is probable that the global supply chain crisis, including intensifying competition for technological supremacy, prolonged trade disputes, and rising commodity prices, may act as a barrier to the current export boom. While the supply chain crisis is also visible in the defense industry, major advanced countries are already taking various measures to overcome supply chain risks in the defense industry, such as building a reliable supply chain. On the other hand,
the Korean defense industry lacks the concept of supply chain management and does not even conduct supply chain surveys, which is the first step in responding to supply chain risks. Therefore, in order to respond to the recent supply chain risks surrounding the defense industry, it is necessary to analyze the structure of the supply chain in domestic defense industry and develop a customized strategies to strengthen them.

The purpose of this study is to analyze the supply chain structure of major ground-based weapon systems in Korea, evaluate the stability and competitiveness of the supply chain, and draw policy implications for strengthening the supply chain in each sector.

The supply chain evaluation in this study was conducted from two main perspectives. First, the stability assessment of the supply chain focuses on the resilience of supply chain network and financial solidity of the firms belonging to those supply chains. We analyze the transaction relationship between manufacturers and suppliers and confirm the resiliency of the supply chain transaction structure. We further evaluate the financial stability of the supply chain by reviewing the financial indicators of the K9 self-propelled howitzer and K2 tank participants
to judge their growth, profitability, robustness, and productivity. Second, the supply chain competitiveness assessment was conducted by selecting the K9 self-propelled howitzers and K2 tanks and their foreign competitors, identifying the companies participating in their supply chains, and comparing the financial performance of foreign and domestic firms. Financial performance was analyzed based on key characteristics that determine the competitiveness of a product. Finally, the results of anaylsis on the supply chain stability and competitiveness
assessments were synthesized to derive policy measures to strengthen the supply chain in each sector