Body armor production is a costly, complex process. Many countries do not have the industrial capacity to keep supply local and can fall into the trap of overreliance on international allies. This can prove dangerous when these friendships dwindle – see Russian example. For Korea, the race to transition to domestic production is largely in the hands of processor “Korean Precision Materials Industry”. Their strategy involves a switch towards production, which may prove challenging.
The Aramid Market
“Korean Precision Materials Industry” is currently a processor of aramid, producing composites that are mostly exported abroad. The Korean landscape, as it stands, is export-based. In the aramid market, industry leaders “Kolon Industries” and “Taekwang Industrial” both send most of their products overseas. There was previously no link between these suppliers of aramid, its processors and the body armor industry; “Korean Precision Materials Industry” is attempting to bridge this gap. Their hope is to be able to produce body armor domestically.
The global market for aramid is dominated by the US, with estimates putting it at $4.30 billion for this year. The fiber has uses beyond body armor, in industries such as automotive, aerospace and telecom. Nonetheless, the increase in defense industry spending by many countries in Asia, Europe and the Americas is predicted to push the industry up by 1.0%, showcasing body armor’s impact.
Past Projects
This is not the first attempt at fully domestic production in South Korea. In June 2015, test results by the Korean Board of Audit and Inspection caused concern. The Ministry of National Defense’s sole body armor partnership, allegedly “Samyang Comtech”, was delivering faulty body armor. The products failed to provide appropriate protection against armor piercing rounds, a key concern for potential combat with controversial, AP-using neighbor North Korea.
Beyond the risk to soldiers, this example demonstrates one of the key vulnerabilities of nationalizing production: domestic politics. Reports of the scandal showed that “Samyang Comtech” lobbied the MND to ease restrictions on Required Operational Capacity. This allowed them to maintain their monopolistic industry control, at the cost of soldiers’ safety. Domestic politics got in the way of combatants’s best interest and, while no loss of life occurred, the Samyang case sets a dangerous precedent.
Most concerning, perhaps, is the implication for the current state of Korea’s industry. While expansion by “Korean Precision Materials Industry” can prove instrumental in cutting costs and driving innovation, it does have the potential to attract further scandals. In the absence of any domestic competitors, the company lacks a push to innovate. This can create a monopoly that quickly falls into stagnation.
Next Steps
To prevent a full-scale monopoly, Korea should invest in the expansion of its market, beyond just a singular producer. This ensures that the market is not only competitive but also diversified enough not to crumble under industry pressures.
