Korean arms manufacturers and military services companies saw a drop in their sales last year despite a boom in the global market, according to new international arms industry data released by the Stockholm International Peace Research Institute (SIPRI).
Industry officials said Tuesday that the poor performance was attributable to tough government regulations and "excessive" investigations into alleged corruption related to defense procurement, which has put companies off innovating and advancing their businesses.
SIPRI released a list of top 100 global arms companies for 2017, Monday, saying their sales totaled $398.2 billion, up 2.5 percent from 2016, and an increase of 44 percent since 2002.
Four Korean companies -- Korea Aerospace Industries (KAI), Hanwha Aerospace, LIG Nex1 and Daewoo Shipbuilding & Marine Engineering (DSME) -- were listed in the SIPRI Top 100, with combined arms sales of $5.5 billion, just 1.4 percent of the top 100 total.
All four companies saw a drop in sales, which led to an overall decrease of 23 percent compared with 2016. This was "the largest annual percentage decrease of any country's ranked companies in the Top 100 in 2017," the SIPRI said. (end of excerpt)
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