Gumi City Supports Productivity Improvement for Defense SMEs... 8 Companies Selected

Increase in K-Defense Export Volume... Support for Upgrading SME Production Facilities

Total Project Cost of 1.48 Billion KRW Invested, Expected to Revitalize Regional Defense Industry Ecosystem

Gumi City in North Gyeongsang Province has selected eight companies for the 2024 Defense Industry SME Productivity Enhancement Support Project and will support the advancement and optimization of their production facilities.

Gumi City Hall

This project is organized by the Defense Acquisition Program Administration, North Gyeongsang Province, Gumi City, and Gyeongbuk Technopark. It aims to help SMEs supplying to system integrators quickly respond to the rapidly increasing export volume of K-Defense by supporting the advancement and optimization of molds and production facilities. Through this, the project seeks to improve production capacity, enhance parts reliability, and promote the growth of SMEs.

This year, a total project budget of 1.48 billion KRW (national 460 million, provincial 90 million, city 220 million, self-funding 710 million) will be invested, providing up to 85 million KRW per company, covering up to 50% of costs. Recently, eight companies have been selected.

The city plans to sign agreements at the end of June, implement the project by November, and evaluate the results in December.

The project is expected to help improve the production capacity and growth of defense SMEs, and, together with the Defense Innovation Cluster Project, Gumi Defense Venture Center Support Project, and Defense Network Support Project, contribute to revitalizing the regional defense industry ecosystem.

Mayor Kim Jangho said, "To ensure the continued growth and development of the K-Defense golden era, it is essential to vitalize the industrial ecosystem by fostering the growth of defense SMEs. We will do our best to establish a manned-unmanned integrated system ecosystem through support for the advancement and optimization of production facilities."

The city is also accepting applications for beneficiary companies for the 2025 North Gyeongsang Defense Industry SME Productivity Enhancement Support Project until July 1.

As of the announcement date, SMEs located in North Gyeongsang Province (headquarters or factories, etc.) that need productivity improvement to supply parts for large-scale defense export weapon systems (those that secured orders of more than USD 50 million annually from 2022 to 2023) are eligible to apply. After on-site inspections and evaluation announcements in July 2024, final selections will be made in January 2025.