South Korea eyes Greece as European defense export beachhead

South Korean defense companies are actively pursuing strategic partnerships in Greece, signaling a significant push into the European defense market. Hanwha Ocean has offered to build new submarines and modernize Greece's existing fleet, including its advanced KSS-III class submarines capable of launching ballistic missiles and featuring air-independent propulsion. Korea Aerospace Industries (KAI) is proposing joint production of its Manned-Unmanned Teaming (MUM-T) system, which pairs drones with manned fighter jets.

These initiatives are part of South Korea's ambition to secure a foothold in Europe's substantial rearmament drive, estimated at €800 billion. Greece has stipulated that any submarine program must include at least 25% domestic industrial participation, aligning with its goal to revitalize its defense production capabilities. The country is also exploring the replacement of its aging army vehicles with new Korean-assembled models.

This strategic engagement follows a recent legal victory for Greece in an arbitration case concerning a previous submarine procurement, which awarded the country over €150 million. Analysts suggest these South Korean deals could have far-reaching geostrategic and economic implications for Europe, though Greece's opaque procurement processes and regional geopolitical tensions, particularly with Turkey, present complexities.