Korea to invest 3 trillion won in top 10 defense technology sectors

The ruling People Power Party and the government announced on Monday that they will strengthen support for defense industry exports by investing more than 3 trillion won by 2027 in 10 strategic defense technologies such as artificial intelligence (AI) and high-tech materials. Leading small and medium-sized companies in the defense materials and components sector will receive up to 5 billion won per company for two years to boost entry into global supply chains.

The ‘K-Defense Industry Export Support Council’ meeting at the National Assembly declared the need for “systemic government support for the defense industry in line with rapid changes in international order including the new Trump administration.” “Exports for the defense industry this year are 24 billion dollars, the largest ever. “Due to the strong G2G (government-to-government) nature of the industry, it is very important for the government to take action,” said Rep. Seong Il-jong of the ruling party, chairman of the National Assembly Defense Committee.

The party and government plan to accept suggestions from the defense industry and leverage the special extended working hours system of 180 days. The special extended work authorization system allows workers to work up to 64 hours a week (up to 180 days per year) with the consent of workers and approval from the minister of Employment and Labor under exceptional circumstances such as disasters, calamities, or increased workload. Employment and Labor Minister Kim Moon-soo agreed to provide “active support to the extent possible.” Policy Committee Chairman Kim Sang-hoon met with reporters after the meeting and promised to support suggestions such as financial support and strengthening financial packages through the Export-Import Bank of Korea.

“(With the new Trump administration), we expect the ROK-US alliance to reach new turning points in army, air force, and naval forces,” said People Power Party Floor Leader Kwon Seong-dong. "Legal and institutional support is essential for K-defense exports, making the role of the National Assembly more important than ever."


Seong-Mo Kim mo@donga.com