The Heart of K-Defense
Amidst a Shaking Global Supply Chain:
The Future of Aerospace and Defense Materials Technology- By Changbum Jang, Head of the R&D Center at SeAH Aerospace & Defense

The Importance of the Defense Industry and Supply Chain Stability

Aerospace and defense, in particular, are core sectors directly tied to national security. In these fields, securing a competitive edge in materials technology is no longer an option, but an absolute necessity. According to the Stockholm International Peace Research Institute's (SIPRI) Trends in World Military Expenditure, 2024 report, global military spending reached an all-time high of USD 2.718 trillion in 2024. This represents a 37 percent increase over the decade since 2015, marking 10 consecutive years of growth. Notably, the 9.4 percent year-over-year surge in 2024 was the largest annual increase since 1988, underscoring the rapidly growing strategic importance of maintaining a stable supply chain for aerospace and defense materials.

Rising Global Military Spending and Expanding Risks

In the past, materials were procured through highly fragmented global supply chains that prioritized efficiency above all else. Today, however, there is a mounting concern that these supply chains could be severed at any moment for political, economic, or security reasons. This uncertainty is starkly evident in the recent U.S. and U.K. sanctions on Russian aluminum, copper, and nickel. By banning the issuance of new warrants for Russian metals produced after April 13, 2024, on the Chicago Mercantile Exchange (CME) and the London Metal Exchange (LME), both governments have restricted trading. This has effectively turned price volatility and procurement risks for aerospace materials into a constant, lingering threat.

The Need for Self-Reliance in Core Aerospace and Defense Materials

Furthermore, the industry relies heavily on specific countries or companies for core materials, including high-strength aluminum alloys like 2024 and 7075 used in aircraft fuselages and wings. Any disruption in this supply leads directly to production setbacks and a weakened national defense. Given this reality, localizing core materials and securing the technology for their practical application has escalated from a matter of industrial competitiveness to one of sheer survival.

Strengthening Global Competitiveness Through K-Defense Exports

Aerospace and defense materials technology is constantly evolving, simultaneously pursuing lightweighting, advanced performance, and multifunctionality. Novel aluminum alloys and composite materials—which are lighter and stronger than traditional metals—are increasingly being applied to aircraft fuselages and fighter jet components. Active research is also underway to utilize additive manufacturing (3D printing) to efficiently produce parts with complex geometries and optimize material properties.

For instance, GE Aerospace's facility in Auburn, Alabama, produced over 100,000 fuel nozzle tips for LEAP engines using additive manufacturing (AM), proving that AM in the aerospace and defense sectors has moved well beyond the research phase and into high-volume production. Moreover, approximately 50 percent of the Boeing 787's structure is made of carbon composites, indicating that the optimal combination of composites, aluminum, and titanium has become the new standard for aerospace structural materials. Such technological evolution dramatically enhances the performance of aircraft and defense equipment, ultimately serving as the core driver that will reshape the future battlefield.

Major Export Achievements and New Opportunities

Amidst these major industry shifts, SeAH Aerospace & Defense (SeAH A&D) has proactively driven technological development and material localization. Since being designated as a defense material contractor in 1973, we have served as a crucial pillar of the national defense industry. In 1996, we became the first Korean company to obtain quality certification from Boeing, a global aircraft manufacturer. This milestone served as a monumental testament to the excellence and reliability of our materials technology on an international scale. Building on this legacy, we signed a contract to supply materials directly to Boeing as a Tier 1 supplier starting in 2024, playing a vital role in the global aviation supply chain.

Domestically, we have significantly contributed to localization by supplying aircraft fuselage and wing materials, as well as metal components for defense, to major aerospace and defense companies such as Korea Aerospace Industries (KAI) and Hanwha Aerospace. The technological expertise accumulated through these efforts now serves as a robust foundation for expanding into the global market and continuously enhancing our competitive edge.

SeAH A&D’s Technological Edge and Future Strategy

The Role of Offset Programs and Quality Approval Systems

To ensure the sustained growth of the domestic aerospace and defense industry amidst the restructuring of the global supply chain, several critical imperatives must be addressed.

First, achieving self-reliance in core materials is an urgent task that can no longer be delayed. A stable supply of materials is directly linked to production stability and national security.

Second, continuous investment in pioneering R&D is essential. We must secure new materials and processing technologies that keep pace with evolving battlefield environments and technology trends to maintain a competitive edge in the global market.

Third, securing qualifications through offset programs is paramount. It is necessary to build a comprehensive ecosystem spanning the entire life cycle—from offset-based contracts to final delivery—through seamless cooperation between the government and manufacturers.

Although domestic defense exports experienced an adjustment phase in 2024, large-scale demand is expected to rebound with the finalization of the second K2 tank contract with Poland in 2025. Additionally, in the aerospace sector, the upcoming contract for 12 additional FA-50s with the Philippines in June 2025 is driving export diversification and expanding the need for local partnerships. Accordingly, the importance of offsets, local production, and collaboration on quality approvals is becoming increasingly critical.

Securing Technological Independence and Global Competitiveness

Self-reliance in materials and components transcends mere localization, serving as the core engine that drives the sustainable growth of Korea's aerospace and defense industry. SeAH A&D will maintain its unwavering dedication to advancing the domestic defense sector while securing a leadership position in the global market.