South Korea

Newly enacted provisions in the fiscal 2027 NDAA empower Congress with greater oversight on the transfer of wartime operational control to South Korea. Procurement professionals should prepare for increased compliance and reporting requirements, which may impact defense contracting opportunities.

The Defense Acquisition Program Administration (DAPA) has awarded Hanwha Aerospace a contract worth **705.4 billion won** (approximately **$481.5 million**) for the production of the L-SAM missile defense system components. This contract, spanning until **2030**, underscores South Korea's commitment to advancing its missile defense infrastructure and signals growing opportunities in the defense sector for vendors.

Hanwha Systems has successfully installed an Integrated Engineering Control System on the Yang Manchun destroyer, enhancing South Korea's naval capabilities. This local procurement strengthens defense modernization initiatives and reduces reliance on foreign technologies, opening new opportunities for domestic contractors.