Gyeongnam·Changwon to Invest 45 Billion Won Over 5 Years in 'Defense Industry Innovation Cluster' Pilot Project

[Asia Economy Yeongnam Reporting Headquarters Reporter Kang Sharon] Gyeongnam and Changwon have been selected as the first regions for the pilot project of the 'Defense Industry Innovation Cluster' aimed at establishing a regional defense industry cooperation ecosystem.

According to the Defense Acquisition Program Administration (DAPA) on the 23rd, the pilot project for the Defense Industry Innovation Cluster will invest a total of 45 billion KRW over the next five years, focusing on proactive development and localization expansion of defense parts, strengthening win-win cooperation between large and small-to-medium enterprises, forming and operating regional-centered defense industry development governance, and establishing testing facilities and parts development laboratories.

DAPA explained, "Gyeongnam and Changwon have a dense concentration of small and medium defense companies in the region, making concrete achievement possible. They received high evaluations for the local government's willingness and future development potential for defense industry advancement, including active regional budget investment and the discovery of practical parts development needs."

In the first year of the project, the budget will primarily be used for infrastructure construction costs such as the introduction of testing equipment and the establishment of a defense parts localization laboratory. By May, detailed annual project plans will be finalized through consultations between DAPA and local governments, and a business agreement will be signed to officially launch the project.

Based on the project plan for Gyeongnam and Changwon, DAPA forecasts that over the next five years, the project will generate 84.3 billion KRW in production inducement, 37.3 billion KRW in added value inducement, and create 1,024 local jobs.

Wang Jeonghong, Administrator of DAPA, stated, "Through the project implementation in Gyeongnam and Changwon, we will invigorate the regional economy, foster excellent local talent, and create high-quality jobs, thereby contributing to the government's innovation growth policy direction. Starting with one region this year, we will continuously expand the pilot project regions in the future."

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