Ruling Party-Government Council for K-Defense Export Support Held
Up to 5 Billion Won in Support for Outstanding SMEs in the Defense Sector
Active Utilization of Special Extended Working Hours System for Up to 180 Days
The People Power Party and the government have agreed to strengthen the export competitiveness of defense companies by establishing strategic international defense cooperation relationships and enhancing a whole-of-government support system to leap into the global top four defense powers by 2027. In particular, they decided to invest a total of more than 3 trillion won by 2027 in 10 key defense strategic technologies, including artificial intelligence (AI), space, advanced materials, and manned-unmanned complex systems.
On the morning of the 10th, the ruling party and the government held a 'Ruling Party-Government Council for K-Defense Export Support' at the National Assembly, where related ministries such as the Ministry of National Defense, Defense Acquisition Program Administration, Ministry of Strategy and Finance, Ministry of Foreign Affairs, and Ministry of Trade, Industry and Energy formed a whole-of-government support team to support the export of domestic defense companies.
Since it has become important to establish customized comprehensive strategies and systematic support based on detailed analysis across all areas such as purchasing countries' requirements and competitive environments, the launch of the whole-of-government support team is inevitable.
Accordingly, they plan to strengthen high-level consultations, direct intergovernmental cooperation such as defense communities, and networking with related organizations including the legislature, media, and think tanks. The ruling party and government intend to establish a policy and institutional cooperation foundation to expand positive perceptions of K-Defense and support intensive management of export projects for key countries by region.
People including Kwon Seong-dong, floor leader of the People Power Party, and government-party officials shout "Fighting" at the government-party meeting held at the National Assembly on the 10th to support K-defense export. 2025.2.10 Photo by Kim Hyun-min
Kim Sang-hoon, the Policy Committee Chairman of the People Power Party, said at a briefing after the council, "The country is on the verge of several important defense export contracts with Saudi Arabia and Poland," adding, "Although the current political situation is severe, there were requests to send letters from the acting authority level, direct visits by the Ministry of National Defense to the sites, and for the National Assembly to form local visiting delegations responsible for export diplomacy to assist."
Seong Il-jong, a People Power Party member and chairman of the National Defense Committee of the National Assembly, said, "Due to the nature of the defense industry, it has a strong G2B (Government to Business) character," and urged Lee Jae-myung, leader of the Democratic Party of Korea, to cooperate in appointing the Minister of National Defense, noting, "Currently, the president is suspended from duty, and the Minister of National Defense position is vacant due to impeachment."
Seong also stated, "There is a bill prepared that requires National Assembly approval for arms exports," and demanded the opposition party withdraw the bill, saying, "If this bill is not withdrawn, defense companies will have to obtain National Assembly approval every time they sell any materials."
In addition to concentrated investment in the 10 key defense strategic technologies, they decided to establish a foundation for advanced product development. They will also promote a GVC (Global Value Chain) project to incorporate excellent small and medium-sized enterprises related to materials and components in the defense sector into global corporate supply chains. For these SMEs, up to 5 billion won per company will be supported over two years to facilitate their integration into the global supply chain. Responding to the defense industry's request emphasizing delivery deadlines, they plan to actively support the use of the special extended working hours system within a 180-day range. Furthermore, the ruling party and government will consider easing employment restrictions on retired military personnel and scientists from the Agency for Defense Development.
Kim Moon-soo, Minister of Employment and Labor, explained regarding special extended working hours, "Since last year, we have been authorizing within the 180-hour range," adding, "If 180 hours are not enough, we will discuss again, but as far as I know, there have been no cases where production and exports were hindered because the Ministry of Employment and Labor did not authorize within the current 180-hour range."
In response to a reporter's question about the seemingly slow execution rate of the budget for the integrated anti-drone project support, Seong said, "Looking at the war between Ukraine and Russia, it seems like we are late, and indeed, we are late," adding, "During last year's supplementary budget review, preparations were made for this part, but due to the Democratic Party's budget cuts, it was not reflected. Our party is taking the lead in advancing this matter."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
