{"id":260546,"date":"2026-05-16T01:31:32","date_gmt":"2026-05-15T16:31:32","guid":{"rendered":"https:\/\/tenbizt.com\/en\/news\/uncategorized\/2026\/05\/16\/us-shifts-to-low-cost-missile-strategy-how-korean-defense-firms-can-capitalize-on-the-70-5-billion-opportunity\/"},"modified":"2026-05-16T01:31:33","modified_gmt":"2026-05-15T16:31:33","slug":"us-shifts-to-low-cost-missile-strategy-how-korean-defense-firms-can-capitalize-on-the-70-5-billion-opportunity","status":"publish","type":"post","link":"https:\/\/tenbizt.com\/en\/news\/military\/2026\/05\/16\/us-shifts-to-low-cost-missile-strategy-how-korean-defense-firms-can-capitalize-on-the-70-5-billion-opportunity\/","title":{"rendered":"US Shifts to Low-Cost Missile Strategy: How Korean Defense Firms Can Capitalize on the $70.5 Billion Opportunity"},"content":{"rendered":"

Translation result<\/p>\n

\"Korea\"
\n U.S., low-cost volume warfare \/ Source: Yonhap News Agency, Getty Images
\n <\/figcaption><\/figure>\n

The U.S. Department of Defense is shifting doctrine. Rather than relying primarily on high-end missiles that cost billions of won each, the Pentagon is moving toward a new class of guided weapons that can be mass-produced at low cost.<\/p>\n

Defense officials recently signed baseline agreements with four contractors \u2014 including Anduril \u2014 to procure low-cost containerized cruise missiles, known as LCCMs.<\/p>\n

The initial agreement covers more than 10,000 rounds over three years. That volume marks a decisive turn from the long-standing U.S. approach of buying small numbers of high-performance systems to a strategy focused on affordable mass production.<\/p>\n

Tomahawk\u2019s 5.3 billion KRW price tag (approximately $3.98 million) and the rise of low\u2011cost weapons<\/h2>\n

The shift follows painful shortages of munitions experienced in recent real-world conflicts, including operations tied to Iran. Those shortfalls exposed a gap in U.S. force posture: in a sustained fight, even highly capable missiles can\u2019t be treated as consumables when each round costs millions.<\/p>\n

\"Tomahawk\"
\n Tomahawk missile \/ Source: Yonhap News Agency
\n <\/figcaption><\/figure>\n

The Tomahawk cruise missile costs roughly 5.3 billion KRW (approximately $3.98 million) per round \u2014 about 5.3 billion won. Its range and accuracy remain unmatched in many roles, but its price makes it impractical to use at scale in prolonged combat.<\/p>\n

Under the new procurement model, the Pentagon plans to buy large quantities of lower\u2011cost missiles priced in the hundreds of thousands of dollars each. The goal is to plug capability gaps left by high-end systems and to rapidly grow overall missile inventories.<\/p>\n

Anduril, which is leading the effort, has committed to delivering at least 1,000 Barracuda\u2011500M autonomous cruise missiles per year.<\/p>\n

The Barracuda\u2011500M launches from mobile containers, giving commanders flexibility on where and how to employ the weapons. Anduril has driven down unit costs by adopting commercial manufacturing practices.<\/p>\n

\"Korea\"
\n Barracuda-500 \/ Source: News1
\n <\/figcaption><\/figure>\n

Reflecting the urgency, the U.S. requested about $70.5 billion for missile procurement in its fiscal 2027 budget \u2014 a roughly 188% increase from the prior year. The budget request signals a sustained push to build stockpiles through volume buying.<\/p>\n

How K\u2011industry could unlock mass production of 10,000 rounds<\/h2>\n

The U.S. shift creates a major export opportunity for South Korean defense firms that combine advanced guidance technology with high-rate production capabilities.<\/p>\n

South Korea already fields a broad guided\u2011weapons portfolio \u2014 including Cheongung, Shingung and Haesung \u2014 and LIG Nex1 has taken a leading role in developing the indigenous long\u2011range air\u2011to\u2011ground cruise missile Cheonryong.<\/p>\n

Korean companies have proven expertise in seekers and guidance systems required for low\u2011cost cruise missiles.<\/p>\n

\"Cheonmu\"
\n Cheonmu \/ Source: Yonhap News Agency
\n <\/figcaption><\/figure>\n

Layer in Hanwha Aerospace\u2019s large-scale production infrastructure, and a Korean low\u2011cost missile offering becomes even more competitive.<\/p>\n

Hanwha has secured supply contracts worth trillions of KRW through exports of the Cheonmu system and claims strong efficiency in producing propulsion systems and warheads.<\/p>\n

Poongsan \u2014 with expertise in drone munitions and fuze technology \u2014 is positioned to maximize the lethality and cost effectiveness of loitering munitions.<\/p>\n

\"Poongsan\"
\n Poongsan combat drone \/ Source: Yonhap News Agency
\n <\/figcaption><\/figure>\n

Korean firms say they already have the technical foundation. What they need now is a clear signal from Seoul that it will compete in the mass\u2011procurement market.<\/p>\n

If South Korea shifts procurement away from an exclusive focus on high\u2011end systems and, like the U.S. model, pairs start\u2011up innovation with large\u2011scale manufacturing, it could become a primary global supplier of low\u2011cost missiles.<\/p>\n","protected":false},"excerpt":{"rendered":"

The U.S. Department of Defense opts for affordable, mass-produced guided weapon systems over expensive high-performance missiles.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_thumbnail_url":"https:\/\/cdn-union.tenbizt.com\/contents\/crawler-dev\/thumbnail\/2026\/05\/CP-2023-0186\/thumb-dae8f83c-20df-4bec-98ef-dcc07af6173f.jpg","footnotes":""},"categories":[278104],"tags":[],"class_list":["post-260546","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-military"],"yoast_head":"\nUS Shifts to Low-Cost Missile Strategy: How Korean Defense Firms Can Capitalize on the $70.5 Billion Opportunity<\/title>\n<meta name=\"description\" content=\"The U.S. Department of Defense opts for affordable, mass-produced guided weapon systems over expensive high-performance missiles.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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