The Cheongung-II, an air defense system made in South Korea, had never been tested in combat until Iran launched waves of ballistic missiles at the United Arab Emirates last month. It reportedly shot down 29 out of 30 missiles and drones it targeted.

The strong debut of the Cheongung-II — which translates roughly to "Heaven's Bow" — is the latest sign that South Korea's defense manufacturers have become important players in the global arms market.

Several nations are looking for additional options as American defense manufacturers have struggled to keep pace with demand. Some countries have waited years for air defense systems because of a backlog for American systems.

South Korea is now the second-largest supplier of weapons systems to NATO countries in Europe, after the United States, according to a report by the Stockholm International Peace Research Institute. South Korea's president has said he intends to build the world's fourth-largest defense industry by 2030.

Since the Russian invasion of Ukraine in 2022, demand in Europe for air defense systems has surged. Lockheed Martin and Raytheon are already running at or near capacity.

There is a clear opening for weapons that are cheaper and more readily available, said Jerry McGinn. "And the Koreans are starting to fill it."

Revenue for LIG Nex1, the company that makes the Cheongung-II, has grown in recent years as countries have built up their air defenses amid new threats from drones and missiles. In its 2021 fiscal year, export sales were 82.6 billion won. By 2025, those sales totaled 921.8 billion won.

The appeal is straightforward: South Korean weapons systems are less expensive than their American counterparts and can be delivered far more readily.

A Cheongung-II interceptor costs roughly $1 million versus $4 million for a Patriot PAC-3, according to Kelly Grieco, a senior fellow at the Stimson Center. Another thing that makes South Korean defense companies so attractive is that they are willing to build weapons factories in foreign countries and share knowledge, while American companies guard their intellectual property.

Although the Cheongung-II is sometimes called the "Korean Patriot," in reference to the battle-tested air defense system manufactured by Raytheon, it is not a replica. The Cheongung-II targets threats at lower altitudes than the Patriot.

South Korea's industrial capacity traces back to decisions the government made in the 1970s. At the time, the country was facing an existential threat from North Korea and was rattled by American troop withdrawals.

Those companies, like Hyundai and Samsung, expanded into defense as they also developed more profitable, heavy industrial equipment for civilian use, according to Yang Uk, a research fellow at the Asan Institute for Policy Studies in Seoul.

Western companies struggle to match the pace at which the vertically integrated chaebols produce to meet the needs of South Korea and its allies, said Mingi Hyun, the founder of K-Defense Monitor.