Controversy Over Bill Allowing Defense Companies to Sponsor Overseas Travel Expenses for Soldiers and Officials [Yang Nakgyu's Defence Club]

Ministry of National Defense Announces Amendment to "Overseas Travel Directive"
Concerns Raised Over Use as Military Rewards and Collusion with Defense Companies

The Ministry of National Defense has decided to amend the law to allow military personnel and public officials to receive expense support from defense companies when traveling abroad for defense export-related business trips. The intention is that having active-duty soldiers, who use the weapons directly, explain them at overseas defense exhibitions and similar venues will help boost K-defense exports. However, some have raised concerns that this could lead to defense industry corruption in the form of hospitality or improper entertainment.

According to the Ministry of National Defense on May 16, the military authorities issued an advance notice of a revision to the "Overseas Travel Directive" the previous day. Under the current directive, it is not possible to receive business trip expenses from domestic companies, but the amendment would allow companies to support official overseas travel expenses if the purpose is to "promote export projects."

The amendment also includes delegating the authority to review official overseas travel from the Minister of National Defense to each service chief of staff, the Chairman of the Joint Chiefs of Staff, commanders and heads of directly affiliated units and agencies under the Ministry of National Defense, and the Deputy Commander of the ROK-US Combined Forces Command. This is interpreted as an effort to simplify administrative procedures in anticipation of an increase in official overseas travel. Notably, there are no distinctions made regarding rank, grade, or specialty, making the eligibility requirements for travelers unclear.

The Ministry of National Defense believes that the participation of active-duty soldiers or military officials in overseas defense exhibitions will enhance the credibility of K-defense. However, since related agencies such as the Ministry of National Defense, the Defense Acquisition Program Administration, the Defense Agency for Technology and Quality, and the Agency for Defense Development are already attending overseas exhibitions, there are concerns that only the number of people traveling abroad will increase. In particular, there are concerns within the military that these trips could be used as rewards or could become indiscriminate, and that "defense industry corruption" could occur if officials become collusive with or provide undue favors to companies after returning from such trips.

Yonhap News

An industry insider stated, "Active-duty personnel or officials affiliated with government agencies related to the defense industry are already sufficiently attending overseas exhibitions," and added, "Rather than accompanying overseas trips, the focus should be on policies related to exports." In response, the Ministry of National Defense announced that it would collect opinions on the amendment until June 4 and would supplement the standards to prevent improper solicitations or lobbying.

Meanwhile, the Ministry of National Defense has been criticized in the past for requesting sponsorship from defense companies during military events. In preparation for the 75th Armed Forces Day parade in 2023, the ministry received donations and sponsorships from private companies, including defense firms and banks, citing budget shortages. The Ministry of National Defense signed donation agreements totaling 35 million won, including 10 million won from KB Kookmin Bank, and 500 million won worth of agreements with Woori Bank, receiving clothing and cosmetics for service members. At the time, there were suspicions that these financial institutions, which were competing for the "Nara Sarang Card" business rights of the ministry, made donations and sponsorships as a form of lobbying to secure business rights from the ministry.

In addition, companies were required to bear the costs of mobilizing weapon systems such as the Korean fighter jet KF-21 Boramae and the Light Armed Helicopter (LAH), which had not yet completed development. It was estimated that tens of billions of won would be needed for expenses such as aircraft fuel, wages for pilots, mechanics, and safety control personnel, transportation costs for launchers and other vehicles, and equipment insurance premiums.