Launch of Defense Industry Mutual Aid Association Worth 200 Billion Won in the Second Half of the Year

On the 7th of last month, the Defense Industry Mutual Aid Association held its inaugural general meeting at the Sapphire Hall of the Seoul Air Force Club and officially launched. Photo by Korea Defense Industry Promotion Association

[Asia Economy Yang Nak-gyu, Military Specialist Reporter] A 'Defense Industry Mutual Aid Association' with a scale of 200 billion KRW for mutual guarantees and insurance among defense industry companies will be launched in the second half of this year.

According to the Defense Acquisition Program Administration (DAPA) on the 28th, until now, guarantee tasks related to defense projects have been carried out by the Guarantee Business Headquarters of the Defense Industry Promotion Association. However, with the recent enactment of the "Act on the Development and Support of the Defense Industry," it has become possible to establish an association responsible for guarantee and mutual aid businesses.

The Defense Industry Mutual Aid Association Establishment Promotion Committee held its inaugural general meeting on the 7th of last month at the Sapphire Hall of the Air Force Hall in Seoul, attended by representatives of about 40 member companies representing 130 companies, officially declaring its launch. Additionally, Ahn Hyun-ho, CEO of Korea Aerospace Industries, Ltd., was elected as the first chairman of the Defense Industry Mutual Aid Association.

The Defense Industry Mutual Aid Association was established based on the Act on the Development and Support of the Defense Industry, which came into effect on February 5 of this year. The association will newly promote various performance guarantees necessary for carrying out defense projects, as well as mutual aid businesses related to manufacturing, production facilities, and equipment required by its members for defense projects, which were previously implemented.

The Defense Industry Mutual Aid Association is scheduled to begin full-scale operations in early June, performing new mutual aid businesses alongside the current guarantee business to strengthen support for defense companies and distribute the profits realized through this to defense companies, thereby promoting the development of the defense industry.