Deepening 'Sighs of the Defense Industry' Even Under the Yoon Administration

[Image source=Yonhap News]

[Asia Economy Yang Nak-gyu, Military Specialist Reporter] Concerns are emerging that there is no defense industry policy unique to the Yoon Seok-yeol administration. Although expectations are rising that South Korea’s defense exports will exceed $10 billion this year due to the increasing preference for Korean-made weapons, there is actually no sign of new government policies.

On the 17th, Defense Minister Lee Jong-seop and representatives of defense companies held the 8th Defense Industry CEO Meeting at the Army Hall in Yongsan-gu, Seoul. Previous defense ministers have also held such meetings. The defense industry complains that none of the proposals raised during these meetings with the minister have ever been reflected in policy. They lament that it is merely an annual event.

An industry official said, “In the past, the Defense Acquisition Program Administration (DAPA) sometimes requested the main points of questions in advance for these meetings,” adding, “I don’t understand why they create a place where you have to give predetermined answers to predetermined questions.”

Another official said, “At the Defense Industry Exhibition Korea (DX Korea), the seating at the meeting with the minister arranged by the organizer sometimes depends on the amount of sponsorship money.”

DX Korea was held two years ago despite the spread of COVID-19, organized by DXK Co., Ltd. At that time, DXK promised to take responsibility if soldiers mobilized for the event contracted COVID-19, but it was just words. An accidental firing of the guided missile ‘Hyeongung’ occurred in front of foreign guests attending the event, but DXK only stated, “The shooting training on that day is unrelated to us.” From this year, DXK plans to organize the event under a different name, but the structure where a specific individual profits remains unchanged.

As defense exhibitions proliferated, the government once attempted to consolidate them. However, over time, defense exhibitions hosted by various academic societies, associations, and the military have increased. This year, the Defense Technology Promotion Research Institute held the ‘2022 Advanced Defense Industry Exhibition.’

There are even complaints that the military is treating defense companies like outcasts. Recently, the Army held the ‘Army TIGER Brigade Combat Unit’ inauguration ceremony and invited defense company representatives because it was the naming ceremony for new weapon systems produced by defense companies. The company representatives rushed there right after attending the Korean Military Science and Technology Society (KIMST) comprehensive academic conference hosted by the Agency for Defense Development in Jeju Island the day before. However, Army Chief of Staff Park Jeong-hwan did not even acknowledge the defense company representatives, let alone greet them. Although they produced the weapon systems, their opinions were not even sought regarding the naming.

Recently, anxiety has increased due to the delayed appointment of the first head of DAPA under the Yoon Seok-yeol administration. There is concern that a politically biased DAPA chief might be appointed, focusing only on maintaining their position rather than genuine interest in defense.

In the past, chiefs who depressed the defense industry were appointed one after another. Former Chief A received a VIP van from a related company during a visit to Europe. However, upon seeing the van, he scolded the local military attach? harshly, saying he was being treated like luggage. That chief abolished the military attach? system immediately upon returning to Korea. Subsequently, the defense attach? system, which was supposed to gather defense export information, disappeared.

Former Deputy Minister B of the Ministry of National Defense visited the press room and loudly advocated, “We should introduce a second deputy minister system in the Ministry of National Defense and absorb DAPA.” Considering that advanced defense countries such as the U.S., U.K., France, Japan, and Israel have acquisition agencies under their defense ministries, this was a reasonable suggestion. However, after moving to become DAPA chief, B changed his stance, saying, “DAPA is an external agency,” indicating a desire to avoid interference from the Ministry of National Defense. He later resigned to the Blue House amid involvement in corruption related to food service contracts.

Former Chief C introduced a low-price competitive bidding system, arguing that the defense industry should have a competitive system like the market. This policy was based on former President Lee Myung-bak’s statement in August 2009 that “If we don’t take bribes, we can reduce weapon procurement costs by 20%.” The logic was to buy weapon systems, which should protect national security, as cheaply as possible. Since then, defense companies have started to seek only cheap parts rather than selecting high-quality parts with their partners to make profits.

An industry official said, “While the interests of associations, academic societies, and institutions and their self-serving exhibitions are problematic, the biggest problem is the lack of a head of an institution who creates policies for defense companies.”

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