The emergence of K-SMPs can be attributed primarily to the creation, in South Korea, of the first private entities operating in the security sector. In fact, even before any move to outsource military activities, the country saw the emergence, beginning in the 1950s, of a series of small companies dedicated to supporting the armed forces. Initially serving the U.S. military by delivering fresh produce to troops stationed in the country, these companies gradually shifted their focus to protecting military installations and providing full-fledged security services. With the Vietnam War (1955–1975) and the return of South Korean troops who had participated in the conflict, South Korea’s private security sector expanded, growing from 800 employees in 1971 to 150,000 in 2013, with approximately 4,500 registered companies.

The relationship between Seoul and Washington will have a profound impact on the South Korean military. In particular, the South Korean military has observed the gradual use of subcontractors by U.S. troops during their various joint operations —notably in Iraq in 2004, when the South Korean Zaytun Division was deployed to Iraqi Kurdistan—but also on Korean soil, where certain U.S. private military companies (PMCs) have secured contracts with U.S. forces stationed there.

When we add to this the ongoing tensions between Seoul and Pyongyang and the numerous international peacekeeping operations in which South Korea has participated, it becomes clear why the South Korean military is today one of the most powerful armed forces in the world, thanks to its modernity and experience.

Demographics and Regulation: The Drivers of K-SMP Growth

In addition to these historical factors, two factors are driving the growth of K-SMPs. The first is demographics. South Korea is currently facing a sharp decline in its birth rate and has been experiencing population decline since 2020.

The challenge of maintaining the country’s military capabilities is all the more pressing given that Seoul’s military relies in part on male conscription. To address this, the country already relies on outsourcing, particularly in the areas of logistics, the security of military facilities, cybersecurity, and the upkeep and maintenance of equipment.

Faced with this situation, South Korean lawmakers have taken action. While, on the one hand, gun control remains strict in the country—which effectively limits the scope of operations for private military companies—on the other hand, regulations governing K-PMCs have gradually evolved, particularly with regard to ship protection missions against acts of piracy. Work in this area began in 2014, and today there is a robust legal framework for private companies carrying out these missions, including a licensing system for companies and oversight of their personnel.

The employment and career transition of former members of the armed forces, intelligence services, or police forces is, in fact, facilitated by the Korean regulatory framework, which imposes age limits for holding command positions (officer, police inspector, etc.) as well as a maximum length of service. At the end of this period, the individual is retired from their institution—which, of course, benefits the private sector, which can recruit experienced personnel seeking a second career after a long stint in government service.

Overview of the K-SMP Market (2003 to Present)

There is evidence of South Koreans working as “security advisers” in Africa during the Cold War and the decolonization conflicts. However, the emergence of K-SMPs as such appears to date back to the 2003 Iraq War. Indeed, alongside South Korea’s military involvement alongside the United States, evidence of the first South Korean private military company— New Korea Total Service (NKTS)—can be found as early as that conflict.

Founded in 2003 in Seoul, NKTS began operations in the Middle East in December of that same year, securing contracts in Jordan, Saudi Arabia, Kuwait, Iraq, and the United Arab Emirates. In total, the company reportedly employed about 100 Koreans—former members of special forces or police forces—and 300 employees from the countries where it operated.

NKTS provided personal protection, security guard services, and building security, as well as training services for government forces and for individuals traveling to conflict zones such as Iraq. In addition, the company operated a training center and a subsidiary, the Global Industrial Group (GIG), which sold security and protective equipment, as well as a wide range of scanners and metal detectors.

In the end, despite the confidence it projected in the media and its plans for growth, the company did not survive.

Since then, new companies have emerged, including two major players. The first, Black Iron, was founded by Eric Ku, a former member of the South Korean special forces. Black Iron offers ship protection services, combat training, and personal and infrastructure protection, as well as what appears to be economic intelligence. It is also reported to employ former police officers and military personnel, including former members of special forces. The group states that it operates in Israel, Austria, Brazil, Saudi Arabia, the United States, and Indonesia—where it reportedly has branches in the latter two countries.

More recently, Black Iron has expanded its operations into Thailand. In addition to these training services, the company reportedly also acts as an intermediary for the sale of South Korean military equipment, such as drones and simulators, to enhance the training of the Thai armed forces. It is worth noting that the company very clearly identifies itself as a private military company (PMC), even using the term “mercenary” in its communications.

As for the second company, it is Bullet-K an SMP based in Seoul. The company has reportedly been in operation since the early 2000s and is active in the fields of ship, personal, and infrastructure security, as well as in the areas of intelligence and economic intelligence—including private investigation, due diligence, and so on.

Add to that the field of training, in which the company claims to have provided its services in Afghanistan, Iraq, and Nigeria. In total, the group is said to have operated in 17 countries, including Libya. It should be noted that this company, like Black Iron, uses the term “SMP,” and, like its competitor, reportedly employs personnel from South Korean intelligence agencies and special forces.

Today, markets open to private security and defense companies in South Korea appear to be multiplying. Although the sector is far less developed than in neighboring China, South Korea is one of the few countries in the region that is fostering companies operating outside its borders—unlike Taiwan or Japan, the latter of which does not appear to have a private military sector.

In addition, the expansion of Seoul’s arms sales abroad, such as tanks and howitzers to Poland since 2022, could also open up new opportunities in the future for K-SMPs, as they could offer their expertise to train the armed forces of countries purchasing South Korean equipment.