Gangwon Province Launches Nation's First "Defense Economy Promotion Team" to Foster Defense Industry

Support for Four Key Areas:
Attracting National Defense Agencies,
Nurturing Small but Strong Enterprises,
and More

On September 22, Gangwon Special Self-Governing Province (Governor Kim Jin-tae) announced that it would establish the nation’s first Defense Economy Promotion Team, leveraging its geopolitical status as a border region and its abundant military-related infrastructure. The province aims to foster the defense industry as a future strategic sector in earnest.

Kim Kwangrae, Deputy Governor for Economic Affairs, is holding a press conference on the 22nd. Photo by Gangwon Special Self-Governing Province

The Defense Economy Promotion Team will serve as a control tower overseeing all aspects of the defense-related industry, including defense industry policy, support for companies, and attracting national defense agencies. To enhance expertise, Choi Youngtaek, a former military officer and defense industry expert, has been appointed as the head of the team.

The province plans to focus on four key areas to vitalize the defense economy: attracting national agencies, nurturing small but strong enterprises, expanding entry into the procurement market, and attracting a defense industry innovation cluster.

Gangwon is working to attract the Defense Science Research Institute’s Marine Research Center, a 140 billion won demonstration facility for marine manned and unmanned composite systems, to Donghae, and the Defense Agency for Technology and Quality’s 50 billion won Protection Test Site to Chuncheon. The province is also planning to attract additional defense agencies.

One local company is currently under review for selection in the Defense Acquisition Program Administration’s “Defense Innovation Company 100” initiative, and the province plans to provide support to ensure that at least three companies are selected in the future.

To foster defense industry companies, the Defense Venture Center is supporting 43 partner companies with technology development and securing sales channels, with plans to expand the number of partner companies to 80 in the future.

The province will also actively support local companies in entering the defense procurement market by increasing the number of businesses registered on the National Defense Commercial Goods Shopping Mall, which allows direct supply to military units, from the current 50 to 150.

In addition, the province will compete to attract a Defense Industry Innovation Cluster. This cluster, which involves an investment of 50 billion won, brings together defense-specialized companies, the military, and defense research institutions. Three regions nationwide have already been selected, and Gangwon plans to pursue the cluster by identifying specialized fields linked to its key industries.

Kim Kwangrae, Deputy Governor for Economic Affairs, stated, “Drawing on our experience of achieving tangible results in the semiconductor industry, which was once considered unlikely to succeed, we will pursue the defense industry with focus and determination. We will do our utmost to ensure that Gangwon Province, which has long endured special sacrifices as a border region, receives special rewards through regional economic development driven by the defense industry.”

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