Busan City Nurtures Defense Venture Companies, Resulting in Solid Defense Industry Sales

Small and Medium Defense Venture Companies Achieved 12.7 Billion KRW in Defense Projects and 184.2 Billion KRW in Sales Last Year

Busan City and Busan Defense Venture Center Boost Sales of 53 Contracted Companies through Customized Support

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The stern gate developed by Geumha Naval Tech.

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] It has been revealed that Busan City achieved significant results in sales and job creation last year by supporting local small and venture companies in the defense industry sector.

Busan City (Acting Mayor Byun Seong-wan) announced on the 21st that it supported the Busan Defense Venture Center with 230 million KRW last year, enabling small and venture companies in the defense sector to achieve sales of 184.2 billion KRW and secure 12.7 billion KRW in national funds through the selection of defense projects.

Additionally, a total of 508 jobs were maintained or created.

The Busan Defense Venture Center (Eomgung-dong, Sasang-gu) was established in December 2008 through an agreement between Busan City and the Defense Technology Quality Institute.

Utilizing the technology and defense network of the Defense Industry Technology Promotion Research Institute (an affiliate of the Defense Technology Quality Institute), it provides customized support across all business areas such as discovering defense projects, developing defense technologies, education, and securing sales channels to help Busan’s small and venture companies enter the defense industry.

Starting with 15 partner companies in its founding year of 2008, the number grew to 53 companies by 2020.

Until recently, it has achieved remarkable growth with defense sector sales of 642.7 billion KRW, government support funds for defense projects amounting to 67.2 billion KRW, and maintenance and creation of 1,822 jobs, playing a significant role in revitalizing the local economy and creating jobs.

Over the past three years, 11 companies including Daeyang Electric Industry Co., Ltd., Geumha Naval Tech Co., Ltd., KST Plant Co., Ltd., Fine Precision Co., Ltd., and Daeyang Instrument Co., Ltd. participated in national fund-supported development project competitions hosted by the Defense Acquisition Program Administration and the Ministry of Science and ICT, receiving 25.7 billion KRW in national funding.

Last year, ▲Daeyang Electric Industry Co., Ltd. delivered 70 billion KRW worth of integrated ship communication systems, ▲Geumha Naval Tech Co., Ltd. supplied 40 billion KRW worth of ship-mounted equipment, ▲Wonjin M&T Co., Ltd. provided 13 billion KRW worth of mobile firepower equipment, ▲Sonatech Co., Ltd. delivered 4 billion KRW worth of underwater acoustic detectors, and ▲Fine Precision Co., Ltd. supplied aircraft wiper systems worth approximately 1 billion KRW to the military.

In this process, the center played a role in providing one-stop support for product development and securing sales channels for partner companies.

M.K. Co., Ltd. achieved a contract to supply radio jamming protection navigation devices (anti-jamming devices) developed with Busan City’s support in 2018 to partner companies worth 370 million KRW. Furthermore, its sales increased 2.3 times from 2.2 billion KRW in 2017 to 5 billion KRW in 2020 over three years after the agreement.

Jeong-A Marine Co., Ltd. secured a pilot supply contract worth 140 million KRW with a ship system company by developing an automatic hoisting and lowering mooring and fast rope system through a defense venture project in 2018. Through pilot supply, it expanded its business area from producing ship hatches, doors, and ladders to becoming a specialized development and production company.

Korea Industry developed a prototype submarine water heater with Busan City’s support in 2016 and, with technical advice and domestic parts development information from the Busan Defense Venture Center, supplied water heaters worth 150 million KRW to the Navy Logistics Command and ship system companies in 2019. It also expanded its business area into the defense sector with a civilian plastic injection molding specialist company by producing submarine water heater assemblies and thermometers.

Byun Seong-wan, Acting Mayor of Busan, said, “The Busan Defense Venture Center support project is a program that signs agreements with local small and venture companies that have technological competitiveness, can be applied to the defense sector, and want to enter the defense industry, providing support for technology, management, and military commercialization.” He added, “We will strengthen cooperation so that local companies can actively enter the defense sector, which has high entry barriers, through the center.”

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