Investing 1.5 Trillion Won in Civil-Military Technology Cooperation

Defense Industry to Train Over 3,000 Personnel Annually

[Asia Economy Yang Nak-gyu, Military Specialist Reporter] The government has decided to invest more than 1.5 trillion won in civil-military technology cooperation by 2027.

On the 14th, the Ministry of National Defense announced that Minister of National Defense Lee Jong-seop and Minister of Trade, Industry and Energy Lee Chang-yang jointly presided over the Defense Industry Development Council at the Ministry of National Defense’s main conference room in Yongsan, Seoul, to continue last year’s defense industry export achievements. This was the first such meeting since the current government took office.

The Ministry of Trade, Industry and Energy announced the "2023-2027 3rd Basic Plan for Civil-Military Technology Cooperation Projects" on the same day to support the "Export Strategic Industrialization of the Defense Industry" presented at the Defense Industry Export Strategy Meeting held in November last year, chaired by President Yoon Suk-yeol.

The plan includes not only investment in civil-military technology cooperation but also the promotion of a preliminary feasibility study project worth 2 trillion won over five years for high-risk, high-return research and development in 16 key areas such as space, artificial intelligence, cyber, and robotics. Additionally, during this period, 200 billion won will be invested to achieve self-reliance in 40 core defense materials and components, promote the designation of new specialized complexes for materials and components for defense companies, and train more than 3,000 personnel annually in defense-based industries such as machinery and aviation.

Furthermore, financial support worth 100 billion won annually will begin for small and medium-sized defense export companies, and a customized cooperation strategy will be developed to link the defense industry with sectors such as energy, plants, and information and communication technology (IT). This basic plan will be finalized after review by the National Science and Technology Advisory Council scheduled for later this month.

The Ministry of National Defense also revealed plans to participate as a leading country alongside the host country at the MSPO defense exhibition in Poland, a major defense export destination, to promote weapon systems currently being exported through various programs. The Defense Acquisition Program Administration announced plans to strengthen financial support for the defense industry and to foster specialized defense space companies.

Minister of National Defense Lee Jong-seop said, "Through last year’s record-breaking defense export performance, we confirmed that South Korea’s weapon systems are sufficiently competitive in the global market," adding, "We must become one team through whole-of-government cooperation to build trust with purchasing countries." Minister of Trade, Industry and Energy Lee Chang-yang stated, "We will strongly support the defense industry to surpass a 5% global market share and leap forward as one of the world’s top four leading countries."

The meeting was attended by the two ministers and senior officials from both ministries, the head of the Defense Acquisition Program Administration, representatives from the Army, Navy, and Air Force, the Ministry of Science and ICT, Ministry of Foreign Affairs, Ministry of SMEs and Startups, Financial Services Commission, Export-Import Bank, Defense Technology Quality Institute, and Defense Technology Promotion Research Institute.