Holding the Defense Industry Intergovernmental Council... Second under the Moon Administration

Jointly Hosted by Defense and Industry Ministers: 6th 'Defense Industry Development Council' Held
First Time in 1 Year and 10 Months Since September 2018... Second Gathering of Government Ministries and Agencies Under Moon Administration

Defense Minister Jeong Kyeong-du speaking at the 3rd Defense Industry CEO Meeting held on January 8th at the Defense Convention in Yongsan-gu, Seoul. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Moon Chaeseok] The government held an inter-ministerial council to prepare policies to strengthen competitiveness, including support measures for defense industry exports. It was the first gathering of government ministries and agencies related to the industry in 1 year and 10 months since the 'Defense Industry Promotion Meeting' in September 2018, and the second since the inauguration of the Moon Jae-in administration.

The government announced that Defense Minister Jeong Kyeong-du and Minister of Trade, Industry and Energy Sung Yun-mo co-chaired the 6th 'Defense Industry Development Council' on the 8th at the Defense Ministry's main conference room.

The council aims to discover and promote policies to strengthen the defense industry competitiveness, including ▲inter-ministerial defense export support measures ▲localization of core materials, parts, and equipment for weapon systems ▲spin-off of defense technology to the civilian sector and spin-on of civilian technology to defense.

Officials from the Ministry of National Defense, Ministry of Trade, Industry and Energy, Ministry of Strategy and Finance, Ministry of Science and ICT, Ministry of Foreign Affairs, Ministry of SMEs and Startups, Defense Acquisition Program Administration, and KOTRA attended.

The meeting was held to actively discuss defense industry development and export support measures ahead of the enforcement of the 'Defense Industry Development and Support Act' on February 5 next year.

Four agenda items were discussed at the council: ▲development plans for the Defense Industry Development Council ▲activation plans for the Defense Material Trade Support Center ▲development plans for localization of defense parts ▲industrial ripple effects of the former helicopter performance improvement project.

The Ministry of National Defense announced plans to hold the council regularly and convene it as needed. It proposed measures to ensure the implementation of the council's outcomes through the legislation of subordinate laws under the Defense Industry Development Act and the establishment of an implementation inspection system.

Sung Yun-mo, Minister of Trade, Industry and Energy./Photo by Kang Jin-hyung aymsdream@

The Ministry of Trade, Industry and Energy presented the expected industrial ripple effects if the UH-60 helicopter performance improvement project conducted by the Korea Institute for Industrial Economics and Trade is replaced with a domestically produced model. The Ministry of National Defense will refer to the final research results from the institute and establish a mid- to long-term development plan for medium-sized mobility helicopter forces considering military operation, financial, and industrial aspects.

KOTRA's Defense Material Trade Center plans to build a professional defense export support system by strengthening cooperation with related ministries and reorganizing its structure.

The Defense Acquisition Program Administration plans to subdivide the current core parts localization project structure into ▲core parts development type ▲export-linked parts development type ▲general parts development type and expand support for parts localization projects. In collaboration with the Ministry of Trade, Industry and Energy, it will identify and localize core defense parts with high export potential and possible spin-off of defense technology to the civilian sector.

Minister Jeong said, "The defense industry is a national core industry that builds strong security, drives advanced technology development, and fosters defense exports, serving as a future growth engine for our economy." He emphasized, "As our government prepares for the post-COVID era, the domestic defense industry also needs to transform into a leading (First Mover) industry that leads the global market."

He added, "The Ministry of National Defense and the Defense Acquisition Program Administration are promoting and reviewing policies based on the Defense Industry Development Act, such as prioritizing domestic products, defense innovation clusters, and autonomous new defense cost systems." He expressed hope that the council would be a forum to explore domestic defense industry development plans and build consensus on policy directions among government ministries and the military.

The Ministry of National Defense is pursuing the national agenda of 'Fostering the Defense Industry Suitable for the 4th Industrial Revolution Era' and '4th Industrial Revolution Smart Defense Innovation.' Together with the Ministry of Trade, Industry and Energy and the Ministry of Science and ICT, it is carrying out cooperative projects such as ▲establishing intelligent smart air wings ▲utilizing 3D printing. It is actively implementing 'Digital Strong Army, Smart Defense' by promoting projects like the ▲Army Drone-Bot Combat System and ▲Navy Smart Combat Ship, which incorporate advanced civilian technologies into the military.

Minister Sung stated, "The defense industry is not only a national security asset of our country but also a driving force behind national industrial development. Over half a century, it has developed and exported tanks, fighter jets, submarines, transforming from a country that received weapon aid to an exporting nation." He noted, "It has led technological advancements across all domestic industries including machinery, electronics, communications, shipbuilding, and aviation."

He added, "The Ministry of Trade, Industry and Energy has supported the development of weapon systems such as domestic mobility helicopters in cooperation with the Ministry of National Defense and the Defense Acquisition Program Administration, and has jointly promoted demonstration projects related to drones and robots, such as runway snow removal equipment automation and 500g-class reconnaissance drones." He emphasized, "It has also continuously supported defense export activation through the Defense Material Trade Support Center."

He further said, "In a situation where the 4th Industrial Revolution and innovative civilian technology development accelerate digital-based economic innovation, the defense industry needs to be reexamined from the perspective of national industry." He diagnosed, "It is necessary to actively introduce excellent civilian technologies and create an industrial ecosystem led by domestic companies for weapon systems and core materials, parts, and equipment to secure industrial and export competitiveness."

He concluded, "The Ministry of Trade, Industry and Energy will actively support localization of core defense parts through ongoing research and development (R&D) on materials, parts, and equipment. We will strive to ensure that the outcomes spread to the civilian sector and lead to increased exports."

In their closing remarks, the two ministers emphasized, "The government and military will pool wisdom to discover various policies and inter-ministerial cooperation agendas based on the Defense Industry Development Act and focus inter-ministerial capabilities through the council."