'K-Defense Industry's Growing Pains' Amid Uncontrolled Defense Exhibitions
Issues such as Imposing Delay Penalties to Avoid Responsibility by Government Agencies
Unreasonable Regulation Relaxation and Changing the Awareness of Public Officials Avoiding Responsibility
[Asia Economy Yang Nak-gyu, Military Specialist Reporter] There is a growing call to eliminate unreasonable regulations in order to continue the 'K-Defense Industry Myth.'
A typical example is the waterproof paper used to prevent ammunition corrosion. Last year, the Board of Audit and Inspection revealed in its audit report on 'Ammunition Procurement and Management Status' that ammunition packaging tubes different from the defense standards had been supplied to the military for 48 years since 1973. Ammunition packaging tubes are packaging materials that protect ammunition from external shocks and prevent corrosion caused by moisture and condensation.
However, companies are struggling quietly. The packaging tubes are supposed to contain two sheets of double kraft paper that act as waterproof paper, but when the defense standards were created, the military could not develop it, so it was decided to substitute one sheet of kraft paper or two sheets of general cardboard. Defense companies produced according to this standard. However, the Defense Acquisition Program Administration (DAPA) imposed hundreds of billions of won in delay penalties on the companies. Delay penalties are a type of fine.
Looking at the delay penalties imposed by DAPA over the past three years (2019?2021), they have increased every year. From 128.6 billion won (5 cases) in 2019 to 306.2 billion won (8 cases) in 2020, and 323.6 billion won (6 cases) in 2021. Because of this, lawsuits between DAPA and companies have not decreased. After a slight decrease from 48 cases in 2019 to 42 cases in 2020, the number rose again to 57 cases last year.
There are also strong concerns about defense exhibitions held by government agencies related to the defense industry. Two years ago, despite the spread of COVID-19, a large exhibition was held, and soldiers mobilized for the event were infected with COVID-19, and an accidental firing incident occurred with the guided missile 'Hyeongung.' However, the organizer is planning to hold the event again this year under a different name. The structure where a specific individual from the organizer profits remains unchanged. There are dozens of seminars and exhibitions related to defense held annually by defense-related institutions.
An industry insider said, "We spend hundreds of millions of won to participate in domestic defense exhibitions, but it is virtually impossible to find export results with overseas buyers," adding, "These exhibitions are held to boost the achievements of defense agency heads and are events for private companies seeking profit rather than defense."
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There are also complaints that the military is treating defense companies like outcasts. Recently, the military held a proclamation ceremony for the 'Ami Tiger Demonstration Brigade Combat Unit' and invited representatives of defense companies because it was a naming ceremony for new weapon systems produced by defense companies. The company representatives rushed there right after attending the comprehensive academic conference of the Korean Military Science and Technology Society (KIMST) hosted by the Agency for Defense Development in Jeju Island the day before. However, the military did not even acknowledge the defense company representatives, let alone greet them. Although they produced the weapon systems, the military did not even ask for their opinions on the naming.
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