South Korea’s four major defense contractors are projected to generate combined sales of 49.76 trillion won ($36 billion) this year, up 22.7% from 40.55 trillion won a year earlier, as an order backlog approaching 100 trillion won converts into revenue. FnGuide’s forecast puts Hanwha Aerospace at 32.4 trillion won, Hyundai Rotem at 6.85 trillion won, Korea Aerospace Industries at 5.39 trillion won and LIG Defense & Aerospace at 5.12 trillion won. Their combined backlog reached 98.46 trillion won at the end of June, despite declining from 101.33 trillion won at the end of last year as earlier contracts were delivered on schedule. New orders from the United States and Spain since August are expected to support further growth, while additional K2 tank and K9 self-propelled howitzer orders are expected around this month’s MSPO defense exhibition in Poland, analyst Yang Seung-yoon of Eugene Investment & Securities said. The companies spent a combined 1.05 trillion won on research and development in the first half, exceeding 1 trillion won for the first time and approaching the 1.61 trillion won spent during all of last year. They are also increasing defense staffing and investing billions of won in facilities, production lines and computing equipment as exports expand from Eastern Europe into the Middle East, North America and Western Europe. The industry is competing in next-generation technologies including artificial intelligence and manned-unmanned teaming, while becoming an important source of jobs for young workers.