750 Billion KRW to Be Invested Over 5 Years Starting Next Year in Military Materials and Components Projects

Ministry of Industry and Defense Acquisition Program Administration Join Hands... "Domestic Production of Weapon Systems"

[Asia Economy Reporter Moon Chaeseok] The government will invest 75 billion KRW over the next five years starting next year to implement a technology development project for materials and components in the defense industry.

The Ministry of Trade, Industry and Energy and the Defense Acquisition Program Administration (DAPA) announced on the 15th that they signed a Memorandum of Understanding (MoU) including research and development project planning and budget support to cooperate on the technology development project for materials and components in the defense sector.

The Ministry of Trade, Industry and Energy and DAPA plan to prioritize the development of substitute parts for key imported components. This is because these parts have significant technological ripple effects and high export potential, enabling the creation of high added value.

They plan to finalize project planning by the second half of this year and start research and development (R&D) from next year. The projects selected next year will be carried out with a development budget of 75 billion KRW over the next five years.

This MoU is a follow-up measure to the 'Materials, Components, and Equipment 2.0 Strategy' announced by the Ministry of Trade, Industry and Energy on July 9. It is part of collaboration responding to changes in the global value chain (GVC) and division of labor system in the post-COVID-19 era.

Source: Ministry of Trade, Industry and Energy

The Ministry of Trade, Industry and Energy will provide development funding and manage projects, while DAPA will discover and plan technology development projects for materials and components in the defense sector. The final developed parts will be used in weapon systems currently operated or planned to be operated by the Korean military.

Seong Yun-mo, Minister of Trade, Industry and Energy, stated, "I highly appreciate that the government-wide efforts to strengthen the competitiveness of materials, components, and equipment are spreading to the defense sector as well," adding, "The two ministries will actively cooperate to ensure this can be a starting point for strengthening competitiveness in the defense industry’s materials, components, and equipment."

Wang Jeong-hong, Administrator of DAPA, said, "If the engine for the K-9 self-propelled howitzer currently under review is localized, it will lay the foundation for self-reliant defense in the firepower sector and contribute to expanding exports," and added, "I am confident that the synergy created by the meeting of defense and industry will also contribute to the development of the national economy."

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