Tycoons' Discontent Grows Amid Deepening Putin Dictatorship

On August 24, President Putin issued a presidential decree allowing the state to temporarily manage private corporate assets if their drone defense facilities are deemed inadequate. This measure targets a wide range of industries, including fuel, energy, infrastructure, industry, telecommunications, public services, transportation, logistics, and nuclear facilities. While ostensibly aimed at strengthening drone defense, critics argue that it provides President Putin with a pretext to arbitrarily confiscate corporate assets. In particular, new Russian tycoon enterprises that have suffered damage from drone attacks could be directly affected.

Currently, President Putin's dictatorial system is very solid, making an immediate rebellion to overthrow the regime unlikely. Because Putin has maintained a strong dictatorship for a long time, there is a lack of alternative figures, or 'heads,' who could replace him. As a result, tycoons also lack the means to directly counter Putin and are forced to tolerate the current situation. However, in the long term, the accumulation of anxiety over the arbitrary confiscation of corporate assets could become a seed for internal cracks within the regime. In particular, there is a possibility that conflicts could intensify due to differing interests between security elites who benefit from the war and ordinary tycoons who face the threat of asset confiscation.

Russian economic elites are in a situation where they must endure Putin's policies, and to counter this, they need a replacement for Putin. Currently, security elites, i.e., companies supplying logistics, energy, and defense industry products to the Russian military, are directly profiting from the war. On the other hand, ordinary tycoons are experiencing increased anxiety due to the threat of asset confiscation. The accumulation of these profit-sharing issues and the uncertainty of who will lose their property and when, increases the likelihood of internal cracks within the regime in the long term.

Thailand is focusing on South Korean shipbuilders for its next-generation frigate project, with Hanwha Ocean emerging as a strong candidate. In the past, Thailand imported frigates from China but equipped them with U.S. weapons, leading to performance issues. The country is now keenly aware of the need for genuine combat vessels due to competition with Myanmar and Cambodia, as well as border disputes and territorial issues last year.

About 20 years ago, Thailand imported frigates from China, combining a Chinese hull with U.S. weapons. Such incompatible combinations, like interior renovation, led to issues where performance was not properly achieved. At the time, this choice was made due to the low price, but now Thailand strongly feels the need for proper combat vessels.

Thailand's frigate acquisition project is planned to expand from four to eight vessels. Thailand is considering purchasing the first vessel as a test, then acquiring an additional three or seven. This is evaluated as a large-scale project with a total value of 4 trillion won.

The HTMS Bhumibol Adulyadej, built by Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering) in 2018, is serving as the Thai Navy's de facto flagship. The existing HTMS Chakri Naruebet is nominally the flagship but has limited combat capability due to the absence of aircraft. The HTMS Bhumibol Adulyadej proved its combat capabilities with artillery fire during the Cambodia border dispute last year, earning the trust of the Royal Thai Navy.

Hanwha Ocean enhanced the performance of its Ocean 40AF 3,700-ton basic model by increasing its displacement by 300 to 400 tons to meet the requirements of the Royal Thai Navy. Through this improved design, Hanwha Ocean has positioned itself as the only candidate that satisfies the Royal Thai Navy.

Elite crew members of the Royal Thai Navy have already completed sufficient training on the HTMS Bhumibol Adulyadej. This serves as an advantage, as purchasing additional vessels of the same type will shorten crew training periods and make operation and maintenance easier.

Hanwha Ocean is securing a competitive edge in Thailand's next-generation frigate project by promising local production, technology transfer, and MRO (Maintenance, Repair, and Overhaul) support. For local production, Hanwha Ocean is expected to handle about 20% and Hyundai Heavy Industries about 40%. These groundbreaking conditions are considered difficult for other competing nations, such as Singapore, to match.

Pro-Chinese blogs in Thailand are spreading fake news via social media, claiming that South Korean warships have poor performance and quality. This appears to be a disinformation campaign aimed at promoting the sale of Chinese vessels, and even South Korean Ministry of Defense military enthusiasts are reportedly confused by the fake news on social media.

South Korean defense companies have strong competitive advantages in adhering to schedules, local technology transfer, and MRO (Maintenance, Repair, and Overhaul). Due to these strengths, competing nations are reportedly using social media to spread disinformation against South Korean companies.

LIG Nex1 contracted to supply 28 Cheongung 2 missile defense batteries, worth approximately 3.7 trillion won, to the Iraqi Ministry of Defense. However, concerns about payment delays arose due to Iraq's financial instability after the contract in September 2024. In response, Iraqi Finance Minister Faliyilshari and the Chief of Staff met with the South Korean Ambassador to Iraq on August 26 to discuss funding options, demonstrating their commitment to the project.

Iraq currently operates an outdated air defense system composed of 1960s-70s Soviet-era equipment, leaving it virtually defenseless against Iranian missile attacks. Since February, Iran has conducted over 900 airstrikes, resulting in 32 deaths. This contrasts sharply with the UAE, which recorded a 96% interception rate with Cheongung 2 in February. As Iraq's financial problems prevent it from purchasing expensive equipment like Patriot missiles or P3s, Cheongung 2, priced at about one-sixth of Patriot, has emerged as the only realistic alternative.

Iraq's Kurdistan region has been subjected to over 900 airstrikes from Iran since February 28. These attacks have resulted in 32 deaths, making Iraq one of the Arab countries with the highest number of fatalities due to Iranian aggression.

While other Arab nations with financial余裕 can possess 500-600 Patriot missiles, Iraq lacks such resources entirely. This illustrates why Iraq desperately needs a relatively inexpensive yet effective air defense system like Cheongung 2.

Due to internal political conflicts in Iraq, payment for the Cheongung 2 project to LIG Nex1 has been delayed. This controversy was also reported by Iraqi media. In response, Finance Minister Faliyilshari directly met with the South Korean Ambassador to Iraq on August 26 to resolve the issue.

During his meeting with the South Korean Ambassador, Iraqi Finance Minister Faliyilshari emphasized that 'protecting key infrastructure from external aerial threats is a national priority.' This is interpreted as an indirect expression of his intention to normalize the delayed payment issue, stressing the essential role of the Cheongung 2 acquisition project for Iraq's security.