Defense export boom tests supply chain resilience

The explosion at Hanwha Aerospace’s missile production facility in Daejeon in June has raised fresh questions about the resilience of Korea’s defense supply chain, where many critical weapons components often rely on a single qualified manufacturer.

Authorities have not confirmed any impact on production or export deliveries, but defense officials and industry sources say the accident has exposed a long-standing vulnerability at a time when Korea's defense exports are growing faster than ever.

Guided missiles are produced through a network of specialized manufacturers responsible for propulsion systems, warheads, fuzes and guidance equipment.

Because many of those components require proprietary technologies, dedicated production facilities and lengthy qualification processes, replacing a supplier is neither quick nor easy.

“If one supplier stops production, another company cannot simply step in and make the same component,” an industry source familiar with the defense sector said.

“This accident isn’t the real issue.

The risk has always been there.” The issue resurfaced aft ...