EU flags fly outside the Europa Building in Brussels, Belgium. [Getty Images]
EU flags fly outside the Europa Building in Brussels, Belgium. [Getty Images]

The EU is formalizing a major initiative to build a joint defense industry, and South Korea's defense sector is increasingly eyeing entry into the European market through local partnerships rather than direct exports.

The European Commission recently proposed five joint defense projects under the European Defence Projects of Common Interest framework, industry officials said Sunday. The five areas — drones and counter-drones, eastern-flank surveillance, maritime and undersea defense, integrated air and missile defense, and space defense — are structured to allow multiple member states to participate in joint development, production and procurement.

The package is the first to be implemented under the Security Action for Europe joint procurement financing framework, which is backed by 150 billion euros ($171 billion). The EU aims to integrate weapons systems and standards that have long been fragmented across individual member states, seeking economies of scale and interoperability.

Among the flagship projects is DECODER, a drone and counter-drone initiative slated to receive up to 5 billion euros by 2033. It is the largest of the five projects and covers military drones, loitering munitions, counter-drone systems and AI-based unmanned combat capabilities.

The direction of EU defense policy is clear: prioritizing joint production and supply chain development within the bloc over imports of finished weapons — a push toward what analysts call the "internalization" of the European defense market. Straightforward weapons exports by South Korean companies face growing constraints as a result, while opportunities for market entry through local cooperation are expected to expand.

Slovakia, in particular, is drawing attention as a strategic hub for defense cooperation in Eastern Europe. Local companies there hold capabilities in drones, armored vehicles and simulation technology, making them strong candidates for EU joint projects and leaving considerable room for technology integration with South Korean firms.

South Korea's defense industry holds competitive strengths in drone control systems, counter-drone radar, AESA radar, medium-range air defense systems and missiles — areas where cooperation in integrated air defense networks is being discussed.

Experts say a strategic shift is unavoidable for South Korean companies seeking to enter the EU market. Practical approaches include establishing joint ventures with partners in Slovakia, Poland and the Czech Republic, building local production facilities, pursuing co-development based on technology transfer, and participating in parts supply, maintenance and repair operations.

"The EU is now restructuring its market not on the basis of who makes the best weapons, but on who can make them together within Europe," an industry official said. "Supply chain cooperation with Central and Eastern European countries such as Slovakia will become a new breakthrough for South Korea's defense industry."


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