450 Billion KRW Invested Over 5 Years in Defense Innovation Cluster Changwon

Production site of a domestic defense industry company

[Asia Economy Yang Nak-gyu Reporter] A total of 45 billion KRW will be invested over five years in Gyeongnam and Changwon. This is because the area, densely populated with defense small and medium enterprises, has been designated as a pilot project site for the Defense Innovation Cluster.

On the 23rd, the Defense Acquisition Program Administration (DAPA) announced that this year's pilot project area for the 'Defense Innovation Cluster' has been decided as Gyeongnam and Changwon.

Over the next five years, a total of 45 billion KRW will be invested to create a region-centered defense industry development ecosystem. The Defense Innovation Cluster pilot project focuses on proactive development and localization expansion of defense parts, strengthening win-win cooperation between large and small-medium enterprises, establishing and operating regional governance for defense industry development, and building testing facilities and parts development laboratories.

DAPA is promoting a project that encourages excellent companies to actively participate in the defense industry and brings together regional innovation actors such as local governments, system companies, SMEs, universities, and the military to build cooperation ecosystems by region and industry. The pilot project areas were selected by a separate evaluation committee composed of government agency heads, comprehensively considering the willingness and capability of the applying local governments, plans for building innovation ecosystems, and development potential.

For this project, Gyeongnam and Changwon applied in the form of a consortium. The budget for the first year of the project will primarily be used for infrastructure costs such as introducing testing equipment and establishing a defense parts localization laboratory. By May, detailed annual project plans will be finalized through consultations between DAPA and local governments, and a memorandum of understanding will be signed to officially launch the project.

Based on the project plan for Gyeongnam and Changwon, DAPA expects 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.

DAPA stated, "Through the project implementation in Gyeongnam and Changwon, we will revitalize the regional economy, nurture excellent local talent, and create high-quality jobs, thereby contributing to the government's innovation-driven growth policy direction," adding, "Starting with one region this year, we will continuously expand the pilot project areas in the future."

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