This article continues from Part 2, available here:

Chapter 9 — Ammunition Production and Management System

No matter how advanced a country’s weapons systems may be, genuine defense self-reliance is impossible if it cannot produce the ammunition required to sustain those weapons. South Korea’s ammunition production and management system is the result of decades of industrial development, stockpiling policy, and rigorous quality and safety-control systems.
This chapter examines the roles of the major companies that support South Korea’s ammunition industry, as well as the entire process of ammunition stockpiling, storage, and management.

9.1) Major Manufacturers — South Korea’s Ammunition Industrial Ecosystem

9.1.1) Poongsan — The Dominant Force in South Korea’s Ammunition Industry

The story of South Korea’s ammunition industry is, to a large extent, the story of Poongsan. Founded in 1968 as a non-ferrous metals company, Poongsan began its full-scale journey into ammunition production after being designated by the government as South Korea’s first defense-industry company in 1973.

Today, Poongsan is the country’s only comprehensive ammunition manufacturer, producing virtually every major category of conventional ammunition used by the Republic of Korea Armed Forces, from 5.56mm rifle cartridges to 155mm artillery shells for self-propelled howitzers. Its exact market share is not publicly disclosed for national-security reasons, but industry estimates place it close to 100 percent in several key ammunition categories.

The core strength of Poongsan’s production capability is its vertically integrated manufacturing system, covering the entire process from materials to finished ammunition.

Its Angang and Busan plants operate large-scale dedicated production lines for different ammunition types, while the company produces components ranging from propellant materials such as nitrocellulose and nitroglycerin to cartridge cases, projectiles, fuzes, and ammunition links.

This vertically integrated system enables Poongsan to maintain quality control, cost competitiveness, and stable delivery schedules simultaneously.

Poongsan — Major Products

• Small-Caliber Ammunition: 5.56mm, 7.62mm, 9mm, 12.7mm
• Medium- and Large-Caliber Ammunition: 20mm, 30mm, 40mm, 76mm, 105mm, 155mm
• Special-Purpose Ammunition: anti-aircraft ammunition, tank ammunition, naval gun ammunition, dual-purpose ammunition
• Propellants: single-base, double-base, and multi-base propellants
• Sporting Ammunition: more than 100 types exported globally under the PMC brand

As of 2025, Poongsan recorded approximately KRW 5.0486 trillion in revenue and KRW 297.4 billion in operating profit, with the defense segment accounting for nearly 75 percent of its business.

As global ammunition demand surged amid the prolonged war in Ukraine and conflicts in the Middle East, Poongsan invested approximately KRW 68 billion to expand its 155mm large-caliber ammunition production facilities, reportedly doubling production capacity from previous levels.

Poongsan’s ammunition is also exported as part of packages accompanying systems such as the K9 self-propelled howitzer and K2 main battle tank, creating a long-term and stable revenue structure.

Unlike the weapons platforms themselves, ammunition is a consumable product and must be continuously replenished throughout the operational life of those systems. As a result, every new export market for the K9 or K2 can also create new opportunities for Poongsan’s ammunition business.

Poongsan M&A Issue — 2026

One of the biggest topics in South Korea’s defense industry in 2026 was speculation surrounding the potential sale of Poongsan’s defense business. Major defense companies including Hanwha Aerospace, LIG D&A — formerly LIG Nex1 — and Hyundai Rotem reportedly explored the possibility of an acquisition.

Hanwha Aerospace in particular submitted a final bid, drawing attention to the potential vertical-integration synergy of combining “the gun” — the K9 self-propelled howitzer — with “the ammunition” — 155mm artillery shells.

Negotiations ultimately collapsed in April 2026. The industry has viewed the outcome as a strategic pause rather than necessarily the end of the issue, with attention remaining on the possibility of future negotiations involving LIG D&A or other potential buyers.

9.1.2) LIG D&A — The Core of Precision-Guided Weapons

At its March 2026 shareholders’ meeting, LIG Nex1 changed its corporate name to LIG Defense & Aerospace, or LIG D&A, signaling a new stage in its development.

The company traces its origins to GoldStar Precision Industry, established in 1978 after the Park Chung-hee government, concerned about the implications of the Nixon Doctrine, asked GoldStar to participate in the defense industry.

Today, LIG D&A has grown into one of South Korea’s leading companies in the field of precision-guided weapons. Unlike Poongsan, its principal ammunition-related business is not conventional ammunition but precision-guided weapons and munition systems.

LIG D&A — Major Munition Systems

• Surface-to-Air Missiles: Cheongung-I/II, L-SAM interceptors
• Anti-Tank Missiles: Hyungung (K-ATGM)
• Torpedoes: Cheong Sangeo K-745, Beom Sangeo K-761
• Anti-Ship Missiles: Haeseong
• Air-Launched Weapons: KGGB, Air-to-Ship Guided Missile-II

In 2025, LIG D&A posted record results with KRW 4.3069 trillion in revenue and KRW 322.9 billion in operating profit.

Exports of the Cheongung-II to the UAE were a major driver of this growth, and following the system’s reported 96 percent interception rate in combat in the UAE in 2026, overseas interest increased further.

9.1.3) Hanwha Aerospace — A Major Player in Rockets, Propulsion, and Explosives

Hanwha Aerospace plays an important role not only in major land systems such as the K9 self-propelled howitzer, Chunmoo multiple-launch rocket system, and K10 ammunition resupply vehicle, but also in the ammunition and explosives sector.

Its major ammunition-related products include:

• 40mm grenades
• Mortar ammunition
• Short-range anti-tank rockets
• Rocket propulsion systems
• High explosives

One particularly notable development is the company’s plan to build an ammunition plant in the United States. Hanwha Aerospace is pursuing an investment of approximately US$2.2 billion — around KRW 3 trillion — in Arkansas to establish an ammunition-production facility.

Once fully operational around 2030, the facility is expected to have the capacity to produce approximately KRW 700 billion worth of 155mm artillery shells and propellant charges annually. This represents more than simple overseas sales. It is a strategic effort to become directly integrated into the U.S. defense-industrial supply chain.

9.1.4) Other Materials and Components Companies — The Hidden Supply Chain

Ammunition production is not the work of finished-ammunition manufacturers alone. Dozens of materials and component suppliers form the underlying foundation of South Korea’s ammunition industry.

• Hanwha: Explosives, propellants, and explosive-material supplies
• Samyang Chemical Industries: Tear-gas munitions, decontamination agents, smoke chemicals
• Korea Explosives / Goryeo Chemical: Explosives, blasting materials, signaling devices, smoke munitions
• POSCO: Specialty steel for ammunition, high-strength steel for cartridge cases and projectile bodies
• LIG Poongsan Protech: LIG D&A–Poongsan joint venture producing specialized munition components

POSCO’s role is particularly important. The specialty steel used in cartridge cases and projectile bodies requires substantially different properties from ordinary structural steel, including high strength and toughness. POSCO’s technological capabilities in this field provide an important foundation for materials self-sufficiency within South Korea’s ammunition industry.

9.2) Ammunition Stockpiling Policy — How Much Is Enough?

South Korea’s ammunition stockpiling policy is based on the enduring reality that war with North Korea could potentially resume at any time.

The basic principle is to maintain ammunition sufficient for at least 60 days of wartime requirements. In practical terms, this means maintaining enough ammunition to sustain approximately 60 days of high-intensity warfare without relying immediately on outside support.

Table 22: Estimated Major Ammunition Stockpiles as of 2025

As of 2025, South Korea is regarded as possessing one of the world’s largest 155mm artillery-shell production and stockpiling capabilities, with inventories reportedly exceeding 3 million rounds.

This stands in sharp contrast to the rapid depletion of 155mm ammunition stocks in the United States and Europe following the outbreak of the war in Ukraine. South Korea’s position reflects decades of sustained stockpiling in preparation for a possible large-scale conflict with North Korea.

9.3) Evolution of the Stockpile Management System

In the past, ammunition management focused primarily on simply “stockpiling as much as possible.” Today, however, South Korea is introducing an advanced Ammunition Logistics Management System (ALMS) to monitor and manage the condition of stored ammunition in real time.

The system digitally tracks factors such as: temperature, humidity, ammunition condition, storage history and remaining service life. Ammunition approaching the end of its service life, as well as older stocks, can then be prioritized for training use, maintenance, replacement, or disposal.

This creates a systematic rotation-based stockpile management system, allowing the military to maintain large ammunition reserves while simultaneously improving safety, reliability, and logistical efficiency.

9.4) Ammunition Storage and Management — Safety Is Combat Power

Ammunition remains dangerous even while in storage. A single improperly managed ammunition depot can explode and devastate an entire military installation, and throughout history ammunition-depot accidents have caused substantial casualties and loss of combat capability. For this reason, ammunition storage and management are just as important as ammunition production itself.

9.4.1) Storage Safety Standards

• Separation Distance Between Ammunition Depots: Maintain prescribed distances from buildings, roads, and civilian facilities
• Temperature and Humidity Control: Maintain stable conditions year-round with automated monitoring
• Blast-Resistant Design: Install earthen blast barriers between ammunition storage facilities
• Fire Prevention: Automatic fire-suppression systems and strict no-smoking zones
• Security: Double or triple locking systems, CCTV surveillance, and guards

Ammunition depots are dispersed and separated from one another so that an accident at one facility does not trigger a chain reaction in adjacent storage areas. Strict quantity-distance and separation requirements are therefore maintained. Earthen blast barriers are also constructed between storage facilities to help contain the effects of an explosion.

9.4.2) Management of Aging Ammunition

Ammunition has a finite service life. As it ages, propellant performance can deteriorate and fuzes may become unreliable, increasing the risk of misfires or failures to function.

It is currently estimated that approximately 25 percent of stored ammunition is aging or defective and requires replacement, maintenance, or refurbishment.

Methods used to manage aging ammunition include:

• Training Consumption: Older ammunition that remains serviceable is prioritized for live-fire training
• Disassembly and Recycling: Explosives, metals, and other components are separated and recycled
• Controlled Demolition: Unserviceable ammunition is destroyed under controlled conditions at designated sites
• Refurbishment / Upgrade: Some aging ammunition is restored through replacement of fuzes, bodies, or other components

9.5) The Future of Ammunition Production and Management — Smart Manufacturing and Overseas Supply Chains

South Korea’s ammunition industry is currently evolving in two major directions.

The first is smart ammunition manufacturing. Poongsan and other ammunition manufacturers are introducing AI and automated equipment into their production lines to improve efficiency and minimize defect rates. They are also accelerating the development of next-generation ammunition for future battlefield environments, including ammunition for drones, small high-explosive munitions designed for drone delivery, and multipurpose fragmentation munitions.

The second direction is the establishment of overseas production bases. A representative example is Hanwha Aerospace’s planned ammunition plant in Arkansas in the United States. This strategy goes beyond simple exports. By becoming directly integrated into U.S. and European defense-industrial supply chains, South Korean companies aim to build a more resilient ammunition-supply ecosystem capable of maintaining production and delivery even during geopolitical crises.

Conclusion of Chapter 9 — What Makes an Ammunition Power

The ammunition industry is not glamorous. Ammunition does not appear at air shows like tanks and fighter aircraft, nor does it generate dramatic test-launch footage like missiles. Yet the systems used to produce, stockpile, and manage ammunition form the fundamental strength of a defense industry.

Poongsan’s near-monopolistic position in South Korea’s conventional ammunition market reflects national-security requirements, but it also means that without Poongsan, the firepower of the South Korean military could not be sustained for long. LIG D&A’s precision-guided weapons and Hanwha’s rocket and propulsion technologies complement this ecosystem, while POSCO’s specialty steels help support it at the materials level.

As the war in Ukraine has demonstrated to the world, victory does not depend solely on advanced weapon systems. It also depends on how long and how reliably a country can continue supplying ammunition.

South Korea began acting on this lesson decades ago. That is one reason why the country today maintains one of the world’s largest 155mm ammunition stockpiles, and why K-Defense is increasingly recognized internationally not simply as a weapons exporter, but as a reliable defense-logistics partner.

Chapter 10 — Ammunition Exports

Ammunition exports are one of the quietest yet most powerful engines of K-Defense exports. Unlike tanks, self-propelled howitzers, and fighter aircraft, ammunition rarely receives the same level of public attention. Yet ammunition exports are a critical link that ensures the long-term continuity of weapons-system exports.

Sell a rifle, and ammunition can continue to be supplied for years. Sell a self-propelled howitzer, and artillery shells may be supplied for decades. This recurring demand is the essence of the strategic value of South Korea’s ammunition exports.

10.1) Poland — The Largest Market for K-Defense Ammunition Exports

The year 2022 marked a turning point in the history of South Korean ammunition exports.

Alarmed by the security crisis created by Russia’s invasion of Ukraine, Poland signed a historic series of large-scale defense agreements with South Korea. These contracts included not only weapons platforms, but also ammunition as part of broader procurement packages.

According to then-Polish Deputy Prime Minister and Minister of National Defence Mariusz Błaszczak, the agreements included ammunition for the K2 and K9A1 — including 120mm tank ammunition, 155mm artillery shells, and machine-gun ammunition — as well as training programs for Polish soldiers.

Hyundai Rotem secured a contract worth approximately US$3.37 billion to supply 180 K2 Black Panther main battle tanks, while Hanwha Defense secured a contract worth approximately US$2.4 billion to supply 212 K9A1 self-propelled howitzers. Both agreements included ammunition, training, and logistical support.

In other words, ammunition was included as a fundamental component of the K2 tank and K9 howitzer packages, demonstrating that South Korean ammunition exports were not merely supplementary contracts but an integral part of the overall defense agreements.

Poland Strengthens Its Own Ammunition Production

Poland has not limited its strategy to imports. The country has begun a major expansion of ammunition plants in southeastern Poland with the goal of increasing the production of 155mm artillery ammunition used by the K9 by fivefold.

This strategy goes beyond the simple acquisition of foreign weapons. Poland is seeking to strengthen its own military-supply independence through local production while simultaneously deepening technology and industrial cooperation.

For South Korea, this represents a new model of defense partnership in which equipment exports are increasingly combined with technology transfer and joint or localized production.

10.2) Price Competitiveness — South Korean Ammunition’s Greatest Advantage

One of the strongest advantages of South Korean ammunition is its price competitiveness. The production cost of a standard South Korean 155mm artillery shell, including the fuze, is estimated at approximately KRW 1 million per round.

South Korean defense experts have stated that even conservative estimates place Korean-made ammunition at least 30 percent cheaper than comparable European products.

Before the war in Ukraine, the price of a 155mm shell was approximately KRW 2.7 million per round. Following the outbreak of the war, prices reportedly surged to around KRW 12.7 million, more than four times their pre-war level.

In this sharply inflated global market, South Korean ammunition has attracted growing demand because of its combination of large-scale production capacity, reliable quality, and substantial cost competitiveness.

10.3) Controversy Over Support for Ukraine — The Peak of South Korea’s Diplomatic Dilemma

The most sensitive and complex issue surrounding South Korean ammunition exports is undoubtedly the question of support for Ukraine. It is an issue where three competing priorities — alliance obligations, national defense requirements, and diplomatic balance — intersect.

Indirect Support — Between Diplomatic Ingenuity and Controversy

The South Korean government has maintained its principle of not directly providing lethal weapons to Ukraine, while still seeking ways to respond to allied demand.

In 2023, the government adopted a mechanism under which 500,000 rounds of 155mm artillery ammunition were loaned to the United States. The United States would use this ammunition to replenish its own stockpiles while separately supplying ammunition to Ukraine. Under this arrangement, South Korea could argue that it was not legally providing weapons directly to Ukraine.

During a pre-summit briefing for the ROK-U.S. summit, U.S. National Security Council Coordinator John Kirby expressed appreciation for South Korea’s humanitarian assistance and described the country as a “great ally and friend.” This was widely interpreted as a signal that Washington recognized and welcomed South Korea’s indirect approach to supporting allied ammunition requirements.

Russia’s Warning — Geopolitical Pressure

The process, however, was far from straightforward. Russia strongly objected to South Korea’s ammunition support, even when provided indirectly, and warned of possible retaliation. The Russian Foreign Ministry stated that if South Korean ammunition were used on the battlefield in Ukraine, Moscow could regard it as a hostile act.

The United States, in response, emphasized that it takes the ROK-U.S. alliance treaty very seriously, clearly signaling its support for South Korea.

Controversy Over the Depletion of South Korean Stockpiles

The issue also generated controversy within South Korea. Some critics argued that transferring such a large quantity of artillery ammunition could weaken the country’s own security preparedness. The government and military, however, stated that even after the loan of 500,000 155mm rounds, South Korea continued to maintain stockpiles of approximately 3 million rounds.

The loan therefore represented roughly 16 percent of the total stockpile, and the military’s official position was that it did not pose an immediate threat to national security.

10.4) The Middle East and Southeast Asia — Diversifying Ammunition Export Markets

Although often overshadowed by Poland and the Ukraine issue, the Middle East and Southeast Asia are also important markets for South Korean small-arms and special-purpose ammunition.

Middle East

Countries including the United Arab Emirates, Saudi Arabia, and Egypt are major customers for South Korean small-arms ammunition, mortar rounds, and naval gun ammunition.

Egypt, in particular, purchased large quantities of 155mm ammunition alongside its acquisition of 216 K9 self-propelled howitzers. The UAE acquired related missile ammunition as part of its Cheongung-II procurement. Following the system’s reported 96 percent interception rate in combat in 2026, confidence in the weapon system and its interceptors rose sharply, contributing to additional demand.

Demand has increased to such an extent that some analysts now describe Middle Eastern countries as effectively lining up to acquire South Korean missile systems.

Southeast Asia

Countries such as the Philippines, Indonesia, and Thailand primarily import South Korean small-arms ammunition and mortar rounds.

Poongsan’s PMC-brand sporting ammunition has also increased its recognition in civilian markets across Southeast Asia, creating a structure in which civilian and military ammunition exports can reinforce one another.

The export of the Cheong Sangeo lightweight torpedo to the Philippines is another important example of naval-munition exports, with the torpedo integrated into the country’s Wildcat maritime helicopters.

10.5) A Key Link in K-Defense Exports — The Strategic Value of Ammunition

The strategic value of ammunition within K-Defense exports extends far beyond the immediate value of individual export contracts.

A Semi-Permanent Export Relationship

Weapons platforms are generally sold once, but ammunition can generate recurring exports for decades. A country that purchases the K9 self-propelled howitzer may need to continue purchasing compatible 155mm ammunition throughout the platform’s service life.

With up to 672 K9s for Poland, 216 for Egypt, and 208 for Finland, the annual volume of 155mm ammunition required for training, operational use, and wartime reserves across these countries could reach millions of rounds. This creates a stable and recurring source of demand for South Korean ammunition.

Completing the Export Ecosystem

The ultimate goal of South Korean defense exports is to establish a package-export model linking:

• K9 self-propelled howitzers with artillery ammunition
• K2 tanks with tank ammunition
• KF-21 fighters with air-launched munitions

Providing everything from the weapons platform and ammunition to maintenance and sustainment creates a one-stop defense package.

Such a structure increases the customer country’s logistical dependence on South Korean suppliers while providing the South Korean defense industry with long-term and recurring revenue. Within this model, ammunition acts as the glue that holds the export ecosystem together.

A Tool of Strategic Partnership

Ammunition exports are not simply commercial transactions. They can also serve as instruments for strengthening diplomatic and security relationships. A country that depends on another state for a steady supply of ammunition naturally has an incentive to maintain stable diplomatic and defense relations with that supplier.

This is also one of the ways in which the United States has historically sustained military influence by supplying allies with both weapons systems and the ammunition required to operate them.

10.6) The Diplomatic Sensitivity of Ammunition Exports — A Quiet Fuse

Ammunition exports are fundamentally different from exports of ordinary commercial goods. Ammunition is designed for use in armed conflict, and the choice of recipient can influence the course of international disputes. As a result, ammunition exports inevitably carry significant diplomatic sensitivity.

Principle on the Direct Provision of Lethal Weapons

South Korea has maintained the principle that it does not directly provide lethal weapons to parties engaged in armed conflict. This principle was most clearly tested in the debate over aid to Ukraine.

Faced with competing alliance obligations and humanitarian considerations, South Korea adopted the loan arrangement as a legal and diplomatic mechanism for responding to allied requirements without directly supplying lethal weapons to Ukraine.

Management of Export Destinations

When reviewing ammunition export licenses, the Defense Acquisition Program Administration (DAPA) and the Ministry of Foreign Affairs consider factors such as:

• The human-rights situation in the recipient country
• The risk of armed conflict
• The possibility of re-export to third countries

If South Korean ammunition were used in a conflict in a way that caused civilian casualties, it could generate international criticism and significant diplomatic consequences.

Controversy Over DPICM (Dual-Purpose Improved Conventional Munition) Cluster Munitions

DPICM-type cluster munitions such as the K310 remain internationally controversial. Countries that are parties to the Convention on Cluster Munitions (CCM) are prohibited from importing or using cluster munitions.

South Korea is not a party to the convention, but it maintains a cautious approach to exports and does not sell such weapons to CCM member states.

The international criticism that followed the U.S. decision to provide cluster munitions to Ukraine further reinforced South Korea’s cautious approach toward the export of these weapons.

Competition with Major Defense Powers

As of 2026, Europe is entering a period of transition. South Korean defense companies rapidly expanded their presence in the European market while traditional defense powers such as Germany and France struggled to increase weapons production quickly enough.

However, if these countries successfully rebuild their domestic defense-production capacity, South Korea’s share of the European ammunition market could decline.

Poland’s effort to expand its own ammunition-production capacity by fivefold can likewise be interpreted as part of a longer-term strategy to reduce reliance on imported ammunition.

Overview of South Korean Ammunition Exports

Table 23: South Korean Ammunition Exports by Country and Product Type

Chapter 10 Conclusion — Ammunition Exports: A Quiet Revolution

South Korea’s ammunition exports rarely attract the same attention as tanks, self-propelled howitzers, or fighter aircraft. Yet every time one of those weapons systems is sold, an ammunition contract often follows. Every time the purchasing country fires its artillery, ammunition is consumed. And when those stocks must be replenished, new orders are generated.

The war in Ukraine brought the strategic importance of this quiet industry into sharp focus. The fact that even the United States faced ammunition shortages and turned to South Korea for support demonstrated that ammunition exports are not simply a matter of trade. They are a national strategic asset.

Despite the diplomatic sensitivities and ethical burden associated with lethal weapons, South Korea’s ammunition-export industry is likely to remain one of the most durable foundations of the broader K-Defense ecosystem and to continue expanding in the years ahead.

Chapter 11 — Future Ammunition Technologies

The history of ammunition is a history of evolution. From the invention of gunpowder to rifle cartridges, from rifle cartridges to guided missiles, and now to electromagnetic propulsion and artificial intelligence, ammunition is entering a new era. On future battlefields, munitions will no longer be mere projectiles. They will evolve into intelligent systems capable of thinking for themselves, tracking targets, and responding to changing conditions. South Korea is preparing to take a leap forward at the forefront of these technologies through independent research and development.

11.1) Precision-Guided Munitions — The Revolution from Area Strikes to Point-Target Strikes

The most significant paradigm shift in modern warfare is the transition from area strikes to point-target strikes. Traditional artillery operations suppress enemy forces by bombarding broad areas with large quantities of shells. However, this approach consumes enormous amounts of ammunition and causes civilian casualties. Precision-guided munitions fundamentally change this paradigm.

GPS Guidance

GPS-guided munitions receive satellite navigation signals after launch, adjusting their trajectories to reach their targets precisely. South Korea’s KGGB, or Korean GPS-Guided Bomb, currently under development, is a representative example. GPS-guided precision artillery shells for the K9 self-propelled howitzer are also under development.

At its 2026 “Hanwha Tech Academy,” Hanwha Aerospace presented precision-guided artillery shells as a weapon system capable of transforming artillery operations from conventional area strikes to point-target strikes.

Laser Guidance

Laser-guided munitions home in on laser energy reflected from an illuminated target. They can achieve greater accuracy than GPS guidance in urban warfare or close-range precision strikes, with the additional advantage of being unaffected by GPS jamming.

South Korea is also pursuing the development of laser-guided artillery shells similar to the American M712 Copperhead.

Combined GPS/INS Guidance

The weakness of GPS-only guidance is its vulnerability to electronic jamming. To address this, combined guidance systems integrate GPS with an inertial navigation system, or INS.

South Korea’s major precision weapon systems, including the Taurus cruise missile and the Cheonryong air-to-ground missile, employ this combined approach. It is also being applied increasingly to artillery munitions.

The Economics of Precision-Guided Munitions

Precision-guided munitions are expensive. Paradoxically, however, they can also be cost-effective. If a single precision-guided munition can destroy a target that would otherwise require 100 conventional shells, it saves the cost of the other 99 rounds and their associated logistical support.

As the war in Ukraine has clearly demonstrated the tactical value of precision-guided munitions, military demand for them has surged worldwide.

11.2) Hypersonic Munitions — The Challenge of Defying Interception

Hypersonic technology — defined by speeds of Mach 5 or higher — is one of the most closely watched fields in the global defense industry. Hypersonic munitions are considered strategic game changers because they are virtually impossible to intercept with existing air-defense systems and can strike across vast distances in a short time.

Hyunmoo-5 — A Strategic Missile Approaching Hypersonic Speeds

The Hyunmoo-5 is a conventionally armed ballistic missile carrying the world’s largest warhead, weighing 8–9 tonnes. It approaches Mach 10 during its descent.

The South Korean government has stated that accelerating the Hyunmoo-4, which carries a two-tonne warhead, to Mach 10 could produce an impact equivalent to 1,000 tonnes, or one kiloton, of explosive force. The Hyunmoo-5’s exceptional strategic value lies in its use of a conventional missile to deliver strike power approaching that of nuclear weapons.

Figure 31: Hyunmoo-5 Hypersonic Ballistic Missile

Ramjet-Powered Projectiles — Hypersonic Ambitions for 155 mm Artillery

An even more notable development is the pursuit of hypersonic technology in artillery ammunition. South Korean researchers have published an academic paper presenting a design concept for a 155 mm gun-launched ramjet projectile.

Under this concept, a projectile fired from an artillery gun ignites a ramjet engine in flight to generate additional thrust. This could extend the range of existing 155 mm artillery ammunition to 80 km or more.

Although the technology remains at the conceptual research and simulation stage, its successful development could fundamentally redefine the range capabilities of self-propelled artillery.

Figure 32. Ramjet-Powered Projectile and Cutaway Model

Hypersonic Glide Vehicles

South Korea is also pursuing the development of hypersonic glide vehicles, or HGVs, as an evolution of the Hyunmoo missile family.

An HGV is launched like a ballistic missile before transitioning into a gliding flight near the edge of the atmosphere, using unpredictable maneuvers to evade interception. By moving beyond the predictable trajectories of conventional ballistic missiles, HGVs are emerging as a central concept in future strategic strike capabilities.

Figure 33. HGV Missile Operation Sequence

11.3) Smart Munitions — The Era of Thinking Ammunition

Smart munitions incorporate sensors, communications systems, and artificial intelligence to identify targets and determine how to attack them autonomously. The potential demonstrated by drones and loitering munitions in the war in Ukraine has accelerated smart-munition development around the world.

Sensor-Fuzed Munitions (SFW, Sense and Destroy Armor)

Sensor-fuzed munitions release small submunitions from an artillery shell. As these submunitions descend by parachute, they use infrared and acoustic sensors to detect tanks and armored vehicles and attack them automatically.

The American M898 SADARM and Germany’s SMART 155 are representative examples. South Korea is also pursuing the development of sensor-fuzed munitions compatible with the K9 self-propelled howitzer and the Chunmoo system. They are attracting attention as a key anti-tank munition concept for countering North Korea’s large armored forces.

Figure 34. SADARM Operation Sequence

Loitering Munitions — The Convergence of Ammunition and Drones

Loitering munitions, also known as suicide drones, represent a new category of ammunition. They loiter over a target area until a target appears, then strike it in a self-destructive attack.

During the war in Ukraine, systems such as Iran’s Shahed-136 and Israel’s Harop achieved dramatic battlefield results, sending shock waves through military establishments worldwide.

In South Korea, Poongsan has established a next-generation ammunition lineup designed to respond to changing battlefield conditions. It includes ammunition for drones, small drone-dropped high-explosive munitions, and multipurpose anti-personnel fragmentation munitions. The company plans to begin pilot production later this year and enter the military market by offering these munitions as a package with the drone platforms it is developing.

LIG D&A has likewise identified the integration of unmanned assets and munitions as a core future business area. Manned–unmanned teaming, or MUM-T, has become a major focus of South Korea’s defense industry. Under this concept, crewed fighter jets or helicopters control loitering unmanned aircraft that carry out strikes in dangerous areas on their behalf.

Figure 35. Loitering Munition Operation Sequence

The Tactical Revolution of Loitering Munitions

The greatest innovation offered by loitering munitions is “target selection after launch.” Conventional munitions require a target to be determined before launch. Loitering munitions, by contrast, can remain airborne after launch and wait for a target to appear. This means that even concealed targets can be struck immediately upon emerging, fundamentally changing the degree of tactical flexibility available.

11.4) Electromagnetic Guns (Railguns) — The Dream of Future Naval Artillery

A railgun is a next-generation weapon that uses electromagnetic force rather than gunpowder to launch metal projectiles at extremely high speeds. It operates by passing a powerful electric current between two parallel conductors, or rails, creating a magnetic field that accelerates the projectile. Development efforts target speeds of Mach 6–7 or higher and ranges of more than 200 km.

Figure 36. Shipboard Electromagnetic Railgun and Fire-Control Radar

Figure 37. Electromagnetic Railgun Internal Mechanism

Developments in Major Countries South Korea’s Railgun Development

• United States: Invested $1.3 billion beginning in 2005 and developed a 33 MJ-class prototype before halting the program in 2021 because of cost-effectiveness and durability limitations.
• China: Unveiled a prototype reportedly capable of a projectile velocity of 2 km/s and a range exceeding 200 km; claims that operational deployment is imminent.
• Japan: Mounted a railgun on a Japan Maritime Self-Defense Force test ship in 2025 and successfully conducted live-fire tests.
• South Korea: Developing a 30 MW-class railgun system under ADD’s leadership, with test firings at sea planned for 2026.

The Agency for Defense Development (ADD) has begun railgun development, achieved some promising results, and drawn up plans to develop the technology into a naval gun for next-generation destroyers.

In 2023, ADD successfully developed a 100 MJ-class pulsed-power generator, and it is pursuing the development of a 30 MW-class railgun system. It also completed the preliminary design for a naval railgun system in 2023, with test firings at sea planned for 2026.

South Korean experts note that, before the Republic of Korea Navy can consider railguns for next-generation destroyer-sized vessels and larger warships, it must first establish high-capacity electrical power systems, cooling equipment, and standardized ammunition systems.

Tactical Advantages of Railguns

Table 30. Comparison of Conventional Naval Guns and Railguns

Once operational, railguns would offer revolutionary capabilities, including ballistic missile interception, long-range precision strikes, lower ammunition costs than conventional gunpowder-based artillery, and rapid response.

By eliminating the hazards associated with gunpowder ammunition and enabling a warship to be struck with a single metal projectile, railguns represent a technology that could fundamentally transform the paradigm of naval ammunition.

11.5) Non-Lethal Electromagnetic Munitions — Combining EMP and Electronic Warfare

On future battlefields, physically destroying the enemy will not be the only objective. Electromagnetic attacks that disable enemy electronic systems are emerging as a central instrument of a new era of warfare.

EMP (Electromagnetic Pulse) Munitions

EMP munitions generate powerful electromagnetic pulses upon detonation, destroying or disabling all electronic equipment within their effective radius. They can instantly render enemy command-and-control systems, communications networks, radars, and electronic equipment useless without causing physical destruction, earning them the description “the ultimate non-lethal weapon.”

South Korea’s ADD has been conducting sustained research in electronic warfare. In 2025, LIG D&A expanded its activities in this field by signing a KRW 1.5 trillion contract with the Defense Acquisition Program Administration (DAPA) for the Korean Electronic Warfare Aircraft (Block-I) system development program. As this system matures, integration with EMP munitions is expected to follow naturally.

Figure 37. Internal Schematic of an EMP Munition and Test Vehicle

HPM (High-Power Microwave) Weapons

HPM weapons are similar to EMP weapons but use directional microwave beams to selectively attack the electronic equipment of specific targets. They are particularly effective in counter-drone operations, capable of neutralizing small drone swarms using electromagnetic waves alone, without lasers or missiles.

As the war in Ukraine has starkly demonstrated the threat posed by drones, interest in HPM munitions has surged worldwide. South Korea is also conducting preliminary research in this field.

Figure 38. Ground-Base Directed HPM Weapon System

11.6) Future Ammunition Technology Roadmap

Present (Around 2026: Securing Core Technologies and Initial Fielding)

• Extended-range and precision artillery ammunition: Mass production of 155 mm extended-range ammunition is underway. System development has begun on GPS-based course-correcting fuzes for 155 mm shells, while research into core precision-guidance technologies continues.
• Loitering (suicide) drone systems: Related systems, including Poongsan’s multipurpose combat, suicide-attack, and munition-dropping drones, are undergoing development and military experimentation. Rapid acquisition and fielding of long-range suicide drones, including K-LUCAS, are also being pursued.
• Next-generation propulsion technologies for ammunition: Firing tests and applied research are underway for 155 mm ramjet-powered projectiles intended for next-generation self-propelled howitzers. Efforts are also being made to secure technologies that extend their range to 100 km or more.
• Preliminary research on special-purpose and energy weapons: ADD-led research continues into core electromagnetic railgun technologies, alongside research and development in high-power electromagnetic technologies, including non-nuclear electromagnetic pulse (NNEMP) and high-power microwave (HPM) systems.

Short to Medium Term (2030s: Expanding Precision, Long-Range, and Unmanned Firepower Systems)

• Advancing precision artillery firepower: Development of course-correcting fuzes for 155 mm shells is to be completed, with operational fielding pursued. The potential for follow-on system development of long-range precision-guided artillery ammunition technologies, including GGAM, is expected to expand.
• Securing ultra-long-range artillery firepower: System development and practical deployment may be pursued for 155 mm ramjet-powered and glide-guided ammunition with ranges of 80–100 km or more.
• Intelligent swarm and autonomous strike capabilities: Fielding of AI-based drone swarms and loitering munitions is expected to expand, accompanied by the progressive advancement of target recognition, cooperative operation, and autonomous flight technologies.
• Fielding directed-energy counter-drone systems: Development and fielding efforts will focus on directed-energy counter-drone systems, including high-power microwave and high-energy laser weapons.
• Advancing hypersonic and shipboard high-power technologies: Progress is anticipated in core hypersonic weapon technologies and system development. The potential application of high-energy lasers and electromagnetic weapons aboard next-generation ships with integrated electric propulsion will also be examined.

Long-Term Outlook (2040s and Beyond: Advanced Autonomy and Integrated Energy Weapons)

• Potential operational deployment of hypervelocity kinetic-energy weapons: If railgun technology matures, decisions on shipboard installation will depend on a comprehensive assessment of power efficiency, rail service life, cooling requirements, sustained firing performance, and cost-effectiveness.
• Highly autonomous AI strike networks: Swarm-based strike systems linked to manned–unmanned teaming (MUM-T) are expected to gain greater autonomy, alongside the development of long-range precision deep-strike networks.
• Multilayered, integrated defense and strike systems: Integrated, multilayered firepower systems are expected to develop by connecting high-energy lasers, HPM weapons, hypersonic weapons, and conventional interception and strike systems through command-and-control networks.

Chapter 11 Conclusion — The Future of Ammunition Is the Future of Technology

If gunpowder opened the history of ammunition, electromagnetic force and artificial intelligence will open its future. Precision-guided munitions will transform traditional concepts of artillery, loitering munitions will blur the boundaries of the front line, and railguns will overturn the paradigm of naval gunnery. EMP and HPM weapons offer new possibilities for achieving victory without taking lives.

South Korea remains behind major military powers such as the United States, China, and Russia in all these fields. Nevertheless, as demonstrated by the K9 self-propelled howitzer, Chunmoo, and Cheongung, it has shown the capacity to reach world-class standards through strategic prioritization and focused investment.

From a powerhouse in conventional ammunition to a leader in smart munitions, and ultimately to a pioneer in future energy weapons — the next chapter of South Korean ammunition technology is only just beginning to be written.

Chapter 12 — Conclusion: Ammunition, the Unseen Measure of National Power

Ammunition: The Unseen Competitive Strength of South Korea’s Defense Industry

When people talk about South Korea’s defense industry, fighter jets and tanks invariably come to mind first. Images of the KF-21 Boramae cutting through the sky, the K9 self-propelled howitzer firing amid clouds of gunsmoke, and the K2 Black Panther tank racing across the plains of Poland have astonished the world. Yet none of these weapon systems can function without ammunition. Without missiles for the fighter jet, artillery shells for the howitzer, and tank rounds for the tank, they are little more than heaps of scrap metal.

Ammunition is the unseen competitive strength that quietly makes everything possible behind the dazzling spectacle of South Korea’s defense industry. Although defense exports have diversified beyond their earlier focus on ammunition and naval vessels to include fighter jets, self-propelled howitzers, and other systems, ammunition remains the most stable and sustained source of revenue in the country’s defense export ecosystem. Sell one K9 howitzer, and ammunition sales follow for decades. Sell one K2 tank, and tank ammunition accompanies it throughout its service life. This is the strategic value of ammunition.

Poongsan’s ammunition is bundled with exports of platforms such as the K9 self-propelled howitzer and the K2 tank, creating a stable, long-term revenue stream. As consumable products, these munitions generate continuing sales throughout the platforms’ operational lives. The result is a structure in which ammunition exports grow in proportion to the expanding customer base for the K9 and K2.

The strength of South Korea’s ammunition industry is also evident in the numbers. As of 2025, South Korea was considered to possess some of the world’s largest production and stockpiling capabilities for 155 mm artillery shells. Its stockpile of these shells is reportedly more than 3 million rounds. This also explains why South Korea alone was able to supply ammunition with capacity to spare while the United States and Europe saw their ammunition stocks depleted by the war in Ukraine.

The greatest strength of South Korean weapons is their price competitiveness. Compared with German self-propelled howitzers, which are considered the world’s best in performance, South Korean models offering similar capabilities reportedly cost about half as much per unit. The same applies to ammunition. Expert assessments that South Korea’s production costs for 155 mm shells are at least 30% lower than Europe’s support this advantage.

How the War in Ukraine Reshaped the Ammunition Industry

Russia’s invasion of Ukraine on February 24, 2022, fundamentally reshaped the global ammunition industry. Western countries that had spent decades enjoying the peace dividend and reducing ammunition inventories suddenly faced an ammunition shortage. The Chairman of the U.S. Joint Chiefs of Staff publicly acknowledged insufficient ammunition stocks at a congressional hearing, while the NATO Secretary General urged member states to increase ammunition production.

South Korea emerged as the greatest beneficiary of this crisis. Its strategy of quietly stockpiling ammunition and maintaining production facilities for decades in preparation for North Korea’s long-range artillery and armored forces proved its worth on the world stage. South Korea’s loan of 500,000 rounds of 155 mm artillery ammunition to the United States was more than an act of logistical support. It was a historic event that demonstrated to the world that South Korea could serve as the ammunition storehouse of the liberal-democratic bloc.

The war’s impact on the ammunition industry was dramatic in terms of both demand and prices. The price of a 155 mm shell rose more than fourfold, from KRW 2.7 million ($2,000) before the war to KRW 11.4 million ($8,500) afterward. Poongsan, a leading force in South Korea’s military ammunition industry, played a major role in establishing the country’s production capabilities. To meet the recent increase in global demand, the company has substantially expanded its production facilities, at least doubling its previous capacity and further strengthening its mass-production capabilities.

Another lesson the war in Ukraine has brought to the ammunition industry is the rise of drones and loitering munitions. Images of small drones costing a few million won destroying tanks worth billions of won have changed the direction of ammunition development worldwide. They have demonstrated that low-cost, high-impact asymmetric munitions are central to future warfare. South Korea is keeping pace by accelerating the development of loitering munitions and drone-carried ammunition.

The prolonged Russia–Ukraine War, military buildups in the Middle East and Africa, and intensifying competition across the Indo-Pacific — including signs of localized fighting between Thailand and Cambodia expanding into full-scale war — have combined to drive explosive growth in demand for conventional military capabilities and advanced unmanned systems. All these conflicts continue to fuel ammunition demand, and South Korea has established itself as one of the principal beneficiaries of this structural increase.

Future Challenges and Vision for South Korea’s Ammunition Industry

South Korea’s ammunition industry has achieved remarkable success, but the challenges ahead are substantial. Its future challenges and vision can be considered across three dimensions.

① Technological Self-Reliance — From Precision to Smart Munitions

The transition to domestic production of conventional ammunition is now virtually complete. The next challenge is precision-guided and smart munitions. Hanwha Aerospace’s published roadmap for next-generation guided weapons, Poongsan’s development of drone-carried ammunition, and ADD’s railgun research demonstrate that South Korean ammunition technology is moving beyond conventional systems toward the future.

Nevertheless, challenges remain in core technologies. South Korea still depends heavily on foreign sources for seekers, which are key components of precision-guided munitions; tandem-warhead technology for penetrating reactive armor; and thermal-protection materials for hypersonic vehicles. Developing domestic capabilities in these areas is the next step toward technological self-reliance in ammunition.

② Industrial Structure — The Double-Edged Sword of Market Concentration

Poongsan is the overwhelmingly dominant player in the ammunition sector, with complete control over the domestic military ammunition market. As South Korea’s only comprehensive ammunition manufacturer, it produces every type of ammunition used by the country’s armed forces, ranging from 5.56 mm rifle rounds to 155 mm shells for self-propelled howitzers. Its market share is not disclosed for national security reasons, but industry estimates it at close to 100%.

This concentrated market structure offers advantages in supply stability and quality control, but it also creates risks. If problems arise at Poongsan, ammunition supplies to the entire South Korean military could be threatened. Rumors in 2026 about the possible sale of Poongsan’s defense division brought this vulnerability into focus. With acquisition talks with Hanwha Aerospace having broken down, the existing structure is likely to remain in place for the time being. In the long term, however, the ammunition industry needs an appropriate degree of competition and more diversified supply chains.

③ Export Diversification — Beyond Europe to the World

South Korea’s ammunition exports are currently overly concentrated on Poland and Egypt. Diversifying into the Middle East, Southeast Asia, Latin America, and Africa is a long-term priority. In the arms industry, maintenance and support matter more than the initial sale. Once a weapon is exported, parts supplies and maintenance contracts are likely to continue for decades. Ammunition is no different. As the export destinations for the K9, K2, and Chunmoo diversify, ammunition exports will naturally diversify alongside them.

The Defense Acquisition Program Administration and the Defense Agency for Technology and Quality plan to develop South Korea’s defense industry into a future engine of national growth by strengthening a multilayered quality-management framework encompassing quality certification, supply chain management, reliability, space, and C5ISR. Ammunition exports must also move beyond the simple sale of finished products toward a new model based on joint production, technology transfer, and localization. Major countries such as Poland are expanding their domestic ammunition factories and increasing their own production capabilities, meaning that the existing model of simply exporting finished products may reach its limits. In response, South Korea must establish an early lead in markets for more technologically advanced precision-guided and smart munitions.

Epilogue — History Written by Ammunition

Ammunition rarely takes center stage. Fighter jets, tanks, and warships command public attention, but their capabilities depend on the less visible industrial systems that supply them. Behind every platform lies the continuing work of production, quality control, storage, and replenishment.

For South Korea, the next chapter is not simply about producing more ammunition. It is about strengthening technological independence, building resilient supply chains, and turning manufacturing expertise into a lasting capacity for innovation. The measure of success will be not only what the country can develop, but what it can reliably produce and sustain.

The history of ammunition is inseparable from the history of South Korea’s pursuit of self-reliant defense. And that history is still being written.