South Korea has become one of the fastest-growing defense markets on the planet. Korea’s defense exports reached $15.4 billion in 2025, surging 60% year-on-year, driven largely by major contracts with Poland and other NATO-aligned buyers. The country’s four largest defense firms — Hanwha Aerospace, Hyundai Rotem, Korea Aerospace Industries, and LIG Nex1 — are expanding
The timing has rarely been better for Korean companies to pursue U.S. government contracts. The White House and the Republic of Korea signed a Technology Prosperity Deal MOU in October 2025 covering AI, semiconductors, quantum computing, and space. Korean companies committed $350 billion in U.S. investments. And the administration’s America’s Maritime Action Plan — issued
AI is now embedded in core defense mission systems, acquisition planning, and contract administration. The legal, compliance, and contractual risks that follow are fast-growing and consequential — capable of derailing performance, generating False Claims Act (FCA) exposure, or disqualifying proposals.
As the Department of Defense (DoD) increases its reliance on AI-enabled capabilities, contractors should understand