Page 31 - Five Forces of Americanisation Richard Hooke 04072025 final post SDR1

The UK Defence Industry in the 21 Century
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The Five Forces of Americanisation

It is also a singularly important channel for dialogue and intelligence gathering with potential partners
and allies overseas. This why it is so important for an exporter to have a prime contractor’s capabilities.

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At a meeting in the Blue House with President Chun on 5 February 1988, BAe’s CEO had been
briefed on South Korea’s probable interest in Rapier: a surface-to-air missile providing air defence
and likely to be deployed on the rooftops of Seoul’s skyscrapers to repel helicopter gunships from
the north.
The small BAe delegation was astonished to hear that Chun was far more interested in the long-
range fighter-bomber capabilities of Tornado aircraft, implying a more proactive military
strategy.
This news quickly reached both Downing Street and the White House. My impression at the time
was that Chun understood very well that meeting the Chief Executive of British Aerospace (now
BAE Systems) meant that his words would quickly reach both Downing Street and The White
House (which they did). With the West preoccupied with the end of the Cold War, he used this
discussion as a subtle reminder to the US and its western allies: to ensure that they remained
assertively supportive of his country. If not, the RoK’s defence posture might become more
overtly aggressive.
(Author’s contemporary notes)
A nation’s acquisition of weapons systems such as the F-35 Lightning II fifth generation combat aircraft
offers an example of the intimacy developed not only between the importer and supplier but also
between other users and operators of the common system. The aircraft is developed and
manufactured by prime contractor, Lockheed Martin (USA), together with “principal partners”
Northrop Grumman (USA) and BAE Systems (UK).
Other countries acquiring the aircraft are Australia, Italy, Netherlands, Israel, Japan, the Republic of
Korea plus Denmark, Singapore, Belgium and Poland.
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In Youido-Dong, Seoul on 10 June, 1999, Hogen Oh, Executive Chairman of the President’s
Corporate Restructuring Committee discussed the “Aerospace Big Deal”: the formation of Korea
Aerospace Industries (KAI) and the country’s need for a new fighter. It favoured a new indigenous
project (what ultimately became the KF-21). His discussion of the options reflected the link between
the country’s allies and defence procurement.
”The ROKAF doesn’t want F-16s. It wants a new fighter – maybe Eurofighter or F-15s, or F-22s even
(not the Sukhoi – a Russian option just isn’t feasible) …”The F-16 carries a $34m fly-away price -
$53m per copy with armaments and equipment (most contractors assume 150% of the fly-away
price should be added) – while Eurofighter is $50m per copy … we want civil aircraft offsets for our
new company too … but Lockheed Martin need to be involved whatever happens”
(Author’s contemporary notes)
As well as supplying the F-35A to the Republic of Korea and ensuring its continuing upgrade
throughout its lifetime, Lockheed Martin has also advised RoK on the development of its own
indigenous project, the KF21 Boromae, described as a “generation 4.5” multirole fighter. US
technology transfer restrictions have forced the country to develop its own technological solutions
(with Lockheed’s oversight) in certain aspects of the programme.

25 years after Hogen Oh’s thoughts on American involvement in the KF-21, South Korea confirmed its
continuing commitment to working with the USA by expressing interest in joining the AUKUS alliance,
a defence and security partnership between Australia, the United Kingdom and the United States,
announced in September 2021. The major part of the agreement (“Pillar 1”) is for the USA and UK to
support Australia in acquiring its first conventionally armed, nuclear-powered submarine fleet.

Reflecting what has become a common concern to governments worldwide – sustaining an indigenous
defence industry whilst accommodating foreign suppliers’ business operations and importing
equipment and services – AUKUS Pillar 2 will involve the alliance developing capabilities (artificial
Intelligence, autonomy, quantum technologies, electronic warfare) in military technologies, increasing

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07/07/2025 Richard Hooke 2025