(LEAD) S. Korea's defense exports reach US$1.17 bln in 2009

(ATTN: RECASTS lead; UPDATES with officials' comments in paras 4, 6-9)
By Shin Hae-in
SEOUL, Jan. 5 (Yonhap) -- South Korea's exports of defense products reached a
record-high US$1.17 billion last year, on the back of stable performances by
smaller firms and diversification of sales items, the country's weapons
procurement agency said Tuesday.

The country's exports last year rose 13 percent from a year earlier and were
slightly below its original annual target of $1.2 billion. But the result is
still considered an accomplishment as large deals, including one on a supersonic
trainer jet were delayed to this year, Seoul's Defense Acquisition Program
Administration (DAPA) said.
The country hopes to export at least $1.5 billion worth defense weapons and
materials this year, the agency said.
"With deals on T-50 (trainer aircraft) and K-9 self-propelled howitzers likely to
be signed shortly, we believe the goal set for this year is highly achievable,"
DAPA spokesman Kim Young-san said in a news briefing.
South Korea's exports of defense items hovered around $250 million from 2002
through 2006, but the amount quadrupled in 2007 and reached over $1 billion for
the first time in 2008.
South Korea is aiming to reach exports of $3 billion in the defense field in
2012, with President Lee Myung-bak professing last year that South Korea's goal
is to become one of the world's 10 largest defense exporters.
Up to 104 South Korean firms exported defense products to a total of 74 countries
last year, both numbers increasing from 2008 when 80 local firms made deals with
59 countries.
Meanwhile, with an increasing number of local firms joining in exports of defense
items, the weapons agency said it plans to work on revising the country's defense
industry law to prevent weapons from going into enemy states.
Some military truck tires, made in South Korea, had been confirmed to have ended
up in North Korea a few years back, officials explained.
The two Koreas are still technically at war with the 1950-53 conflict ending in a
truce.
"With so many companies selling items to so many different states, some products
may end up in enemy states or be used to harm world peace by accident," said Kim
Suk-soon, head of the DAPA's exports bureau. "We cannot control all products, but
plan to work on provisions so that firms dealing with sensitive products can be
warned beforehand."
Last year's exports included submarine systems and airplane components while the
top buyers were the United States, Germany and Indonesia. Ammunition was the
most-sold item, according to the DAPA's statement.
hayney@yna.co.kr
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