Ministry of National Defense Invests 727.8 Billion KRW to Foster Defense Industry

Defense Minister Jeong Kyeong-doo is speaking at the 3rd Defense Industry CEO Meeting held on the 8th at the Defense Convention in Yongsan-gu, Seoul. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Yang Nak-gyu] The Ministry of National Defense plans to invest 727.8 billion KRW this year to foster the defense industry.

On the 8th, Minister of National Defense Jeong Kyeong-du held the '3rd Defense Industry CEO Meeting' at the Yongsan Defense Convention in Seoul and announced that this year's defense industry development budget has increased by 69.3% compared to last year and will support job creation.

The Ministry of National Defense has allocated 727.8 billion KRW this year as a 'core technology development and research infrastructure reinforcement budget' to enhance the potential of the domestic defense industry.

At the meeting, Minister Jeong said, "We will strengthen capabilities in developing advanced weapons such as future strategic technologies and manned-unmanned combined systems," adding, "The defense industry development budget has also increased by 69.3% compared to last year to transform the domestic defense industry into an export-oriented industrial structure and support job creation through localization of parts."

He stated, "We are striving to enact the 'Defense Industry Development and Support Act,' which includes core parts localization, support for the growth of defense small and venture companies, creation of defense industry jobs, and introduction of an active export system to strengthen support for the development of the defense industry."

He also mentioned the 'Rapid Prototype Acquisition System,' promoted as part of smart defense innovation. This system purchases finished products incorporating creative new technologies from the private sector, allows the military to conduct trial operations, and then quickly decides on procurement needs.

Choi Pyeong-gyu, Chairman of the Korea Defense Industry Promotion Association, expressed gratitude, saying, "Through the meetings held so far, many difficulties faced by defense companies are gradually being resolved through open communication with the Ministry of National Defense and the Defense Acquisition Program Administration."

The Ministry of National Defense conveyed, "There have been requests for continuous interest and support from the Ministry to revitalize defense exports," and "there were also opinions hoping for government-level support to establish a standard contract for defense subcontract transactions."

The Ministry added, "To support companies' defense exports, we plan to discover various defense export models," and "we will revise special contract conditions to establish the standard contract for defense subcontract transactions and collaborate with the Fair Trade Commission."

Twenty-four defense industry CEOs, including those from Poongsan, Hyundai Rotem, and Hunid, attended the meeting.

This content was produced with the assistance of AI translation services.