[비즈한국] The selection of a prototype manufacturer to develop the 'Cheongung-III' is expected to take place soon. It is anticipated that Hanwha and LIG Nex1079550, both of which have been involved since the initial development of the 'Cheongung', will bid for this project.
According to the defense industry on the 11th, the Agency for Defense Development (ADD) issued a public request for prototype proposals on the 30th of last month to select a manufacturer for the Cheongung-III (M-SAM Block III). This project aims to secure the Cheongung-III through government-invested domestic research and development led by the ADD. An explanatory session for the request for proposals is scheduled to be held at the ADD on May 13.
The military is currently developing the Cheongung-III, which features improved interception performance and engagement capabilities compared to the Cheongung-II. A total of 2.83 trillion won is expected to be invested by 2034. Once developed, the KAMD will employ a multi-layered defense system: THAAD for the upper tier at an altitude of 40–150 km, L-SAM II and L-SAM for the middle tier within 100 km, Patriot (PAC-3) missiles for the lower tier at 15–40 km, and Cheongung-II and Cheongung-III for altitudes below 20 km.
The Defense Acquisition Program Administration expressed its expectation that "the M-SAM Block-III project will improve deterrence against North Korea's nuclear and missile threats and contribute to further strengthening the Korea Air and Missile Defense (KAMD) system."
It is expected that companies like LIG Nex1, Hanwha Systems272210, and Hanwha Aerospace012450 will collaborate on the development of the Cheongung-III, just as they did for the Cheongung-II. Within the defense industry, there is keen interest in whether LIG Nex1 or Hanwha will take the lead in anti-aircraft defense systems. Because the Cheongung series is a major export product for the defense industry, the company that secures the leadership role this time will likely have a greater influence in future export markets.
The Cheongung is currently the most acclaimed weapon system in overseas markets. Following the United Arab Emirates (UAE), export contracts have also been signed with Saudi Arabia. Exports to the UAE in 2022 were valued at 2.6 trillion won, and exports to Saudi Arabia in 2023 were valued at 4 trillion won. The reason domestic ballistic missile interception systems are popular in the Middle East is due to their excellent performance, including a 100% hit rate, and their price competitiveness. In particular, with rising instability in the Middle East, countries that have already purchased the Cheongung are expected to additionally introduce the upgraded version.
An analysis of data from the British military intelligence firm Janes predicted that the Cheongung-II would capture the top spot in the anti-aircraft defense weapon market with a 27.5% share by 2032. It is expected to capture an even larger market share if it is upgraded in the future.
A defense industry official explained, "Currently, many countries in the Middle East are interested in the development of the Cheongung-III. We expect the export of the Korean-style multi-layered air defense system to expand even further."