Gyeonggi-do Economic Science Promotion Agency Publishes Report on "Defense Industry Trends and Implications for Gyeonggi Province"

The Gyeonggi-do Economic Science Promotion Agency has published the report, 'Defense Industry Trends and Implications for Gyeonggi Province.'

This report aims to analyze the current situation in which the defense industry is emerging as a strategic sector that drives not only weapons production but also job creation and the spread of advanced technologies, and to establish response measures at the provincial level for Gyeonggi Province.

In particular, the report outlines a strategic direction for Gyeonggi Province to become a hub for future strategic industries amid intensifying global geopolitical risks and the reorganization of supply chains.

Global defense spending reached 2.6765 trillion dollars in 2024, marking an average annual increase of 3.3% over the past decade. Notably, South Korea recorded defense exports of 17.3 billion dollars in 2022, 13.5 billion dollars in 2023, and 9.5 billion dollars in 2024, establishing itself as the world's ninth-largest defense exporter.

Gyeonggi Province is home to the second-largest number of defense companies in South Korea. In particular, 16 out of the 85 government-designated defense companies are concentrated in the southern region, including Anyang.

Additionally, the province boasts favorable conditions for creating convergence synergies, with artificial intelligence (AI), information and communication technology (ICT), materials, components, and equipment companies, startups, and military units all clustered together.

'Defense Industry Trends and Implications for Gyeonggi Province' report published by Gyeonggi-do Economic Science Promotion Agency

The report recommends that, in order to foster the defense industry as a future strategic sector, Gyeonggi Province should establish systematic strategies such as: advancing the defense sector through the convergence of AI and software technologies; creating an innovation cluster centered on AI-based research and development; nurturing the defense industry in northern Gyeonggi; and building a defense mega-cluster.

The agency plans to use the release of this report as an opportunity to continue research not only in the defense sector but also in advanced industries such as AI, semiconductors, biotechnology, and mobility, thereby focusing on establishing policy foundations linked to Gyeonggi Province's future industry strategies.

Hyun Changha, Executive Director of the Future Industries Division at the agency, stated, "The defense industry is a strategic sector that supports both national security and the economy. Gyeonggi Province can become the center of innovation in South Korea's defense industry by leveraging its strengths in AI and ICT. We must build a defense ecosystem with global competitiveness through the establishment of strategic provincial policies and the development of clusters."

The agency publishes five reports annually, covering key issues in industry, the economy, and new technologies.

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