Follow-up Measures Discussed After Visits to the UAE, Egypt, South Africa, and Turkey
Joint Public-Private "Control Tower" Export Strategies on the Agenda
Attention on Canada's Next-Generation Submarine Project Worth 60 Trillion Won
Chief of Staff Kang Also Coordinating a Visit to Canada Early Next Month
On December 5, Presidential Chief of Staff Kang Hoon-sik will meet with key defense industry companies to review export strategies targeting the Middle Eastern and North American markets. This meeting is being described as a "joint public-private control tower" gathering, aimed at turning the defense cooperation agreements reached during President Lee Jaemyung's recent tour of the Middle East and Africa into tangible contract results.
According to the Office of the President, Chief of Staff Kang will hold a meeting at the Yongsan presidential office with representatives from around ten major domestic defense companies to discuss export strategies, focusing on large-scale projects currently underway in the Middle East and Canada.
At this meeting, follow-up measures to the defense cooperation discussed during President Lee's visits last month to the United Arab Emirates (UAE), Saudi Arabia, South Africa, and Egypt are expected to be a core agenda item. In particular, since the summit with the UAE included the concept of so-called "package cooperation," such as joint development and joint export of weapon systems, there is speculation that Chief of Staff Kang may coordinate support measures for financing, workforce, and regulatory issues based on industry feedback. The Office of the President has previously assessed that cooperation with the UAE alone could open up contract opportunities worth more than 15 billion dollars (approximately 20 trillion won).
One notable point is Canada's next-generation submarine project. The Canadian government is pursuing a project worth about 60 trillion won to acquire twelve 3,000-ton submarines, with Hanwha Ocean and HD Hyundai Heavy Industries having made the shortlist of qualified candidates. The final contractor is scheduled to be selected next year, and the competition between Korean and German companies is intensifying.
In addition, Chief of Staff Kang is coordinating a visit to Canada either at the end of this month or early next year in his capacity as President Lee's "Special Envoy for Strategic Economic Cooperation (Defense Industry Envoy)." Schedules are being discussed between the Canadian government and Korean defense companies, and it is reported that preparations for the envoy delegation are underway behind the scenes. An industry insider stated, "For a project of this scale, it is virtually impossible to win the contract without government support," adding, "The key will be how effectively the envoy can address the Canadian government's concerns and demands."
From Europe and the Middle East to Canada... Chief of Staff Kang Steps Up as 'Defense Industry Envoy'
This meeting is a continuation of Chief of Staff Kang's defense diplomacy efforts following his appointment as Special Envoy for Strategic Economic Cooperation in October, during which he visited Europe and the Middle East in succession. Starting with visits to key European defense hubs such as Poland, Romania, and Norway in October, he then traveled ahead of President Lee's state visit in November to the UAE and Saudi Arabia as an advance envoy, delivering a personal letter from the President and meeting with high-level officials. At that time, Chief of Staff Kang stated at Incheon International Airport, "With the goal of becoming one of the world's top four defense powers, I will make every possible effort to achieve this."
President Lee also emphasized in his congratulatory speech at "ADEX 2025," Korea's largest defense exhibition, that "achieving the goal of becoming one of the world's top four defense industry powers is by no means an impossible dream," and announced plans for large-scale investment in defense and aerospace research and development (R&D) by 2030. Both the President and Chief of Staff are moving swiftly with envoy activities, diplomatic tours, and industry meetings to achieve the goal of making "K-Defense" one of the world's top four defense powers.
Plan for Win-Win Fund Between Large and Small Companies
The government is also considering ways to create a structure in which large corporations and small businesses, including startups, can grow together, based on major defense contract achievements. After Chief of Staff Kang's defense envoy schedule is completed, there is a plan to establish a win-win fund by accumulating a certain percentage of export revenues from successful large company exports to support small and startup defense companies. The specific scale will be determined after actual export results are finalized.
At a defense industry development forum, President Lee emphasized, "Large corporations with vested interests have already enjoyed considerable benefits," and stressed, "We must provide even stronger support to startups and small businesses." The intention is to link overseas defense contracts won by major corporations to local economic growth, job creation, and the expansion of the innovation ecosystem.
Within and outside the Office of the President, the end of this year and the beginning of next year are seen as critical junctures for whether K-Defense can emerge as a global export powerhouse. With major projects underway simultaneously in the Middle East and North America, there is a sense of urgency that the government and industry must act in unison or risk missing these opportunities.
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