'Reorganize the Defense Acquisition Program Administration into the Defense Industry Administration' to Foster SMEs

Won Junhee Proposes Policy Measures to Lawmaker Bu Seungchan
Calls for Systemic Reforms for SMEs, Including Restructuring the Components Market

As the era of the "K-Defense Renaissance" unfolds, there are increasing calls to reorganize the Defense Acquisition Program Administration into the Defense Industry Administration. This reflects the need not only to expand the role of small and medium-sized enterprises specializing in advanced materials, components, and equipment, but also to restructure the defense components market.

Won Junhee, president of the Defense Small and Medium Venture Business Association (right in the photo), is handing over the "Innovation Pledge Proposal for the Advancement of the Defense Industry" to Bu Seungchan, a member of the National Assembly Defense Committee from the Democratic Party (center in the photo).

On June 2, the Defense Small and Medium Venture Business Association announced that it had submitted the "Innovation Pledge Proposal for the Advancement of the Defense Industry" to Bu Seungchan, a member of the National Assembly Defense Committee from the Democratic Party.

The proposal emphasizes that the Defense Acquisition Program Administration should be reorganized into the "Defense Industry Administration" to separate its industrial development functions, and that a systematic structure should be established for the global standardization and certification of advanced materials, components, and equipment, as well as for linking these efforts to R&D. It also calls for the creation of new departments within the Defense Industry Administration dedicated to defense materials, components, equipment, and IT technology. The association stressed that it is not merely a matter of increasing subsidies, but that there is a need to fundamentally redefine South Korea's defense industry.

In particular, the proposal points out that in order to foster small and medium-sized venture enterprises as key players in the defense industry, it is essential to establish a system that supports the entire process, including technology development, standardization, certification, procurement, and exports. It also stated that the amendment to the Defense Industry Development Act, previously proposed by the Defense Small and Medium Venture Business Association, should be actively promoted in the National Assembly.

Won Junhee, president of the Defense Small and Medium Venture Business Association, said, "South Korea has a strong manufacturing and ICT base, and possesses materials, components, and equipment technologies that have already been proven in the civilian industry. This gives us ample potential to emerge as a leading nation in the global defense components market," adding, "Rather than focusing on 'support' that remains within the bounds of institutional frameworks, the key is to create 'platforms and standards' that actually enable market entry and competition."

Established in 2020, the Defense Small and Medium Venture Business Association has been pursuing policies to foster small and medium-sized defense enterprises and to promote the localization of components, among other institutional initiatives.