Korea Venture Business Association: "Defense Industry Startup Promotion Plan Lays Foundation for Deep-Tech Venture Takeoff"

"Welcoming the Policy Shift for K-Defense"

The Korea Venture Business Association welcomed the government's "Defense Industry Startup Promotion Plan" announced on the 23rd.

In a commentary released on the 24th, the association stated, "Through this plan, the structure of the defense industry will be improved, and a systemic foundation has been established for deep-tech ventures and startups to emerge as key players in national security and economic growth." It added, "This will mark a policy shift toward substantially expanding the participation of innovative ventures and startups and strengthening the foundation for the sustainable growth of K-Defense."

Venture Business Association logo. Venture Business Association

The association predicted that this plan will serve as an opportunity to reinforce the growth base of defense-industry venture companies. The association said, "By expanding entry opportunities through the Defense Startup Challenge and the introduction of a competition-based acquisition system, and by establishing hubs for the Defense Artificial Intelligence Transformation (AX), a foundation for data utilization will be created," and added, "Including the supply of risk capital through the Next Unicorn Project Fund, this will function as a practical growth engine for venture companies that are struggling to secure financing and sales channels."

In addition, it assessed that the introduction of the Defense Industry Win-Win Cooperation Evaluation and the system prioritizing the use of domestically produced components will create an opportunity for venture companies' innovative technologies to be evaluated and utilized fairly, and for cooperation between large enterprises and small and medium-sized venture companies to spread in a balanced manner.

Finally, the association said, "We hope that, through these measures, K-Defense will firmly establish itself as a key growth axis in the global market," and added, "The association will also do its part by strengthening cooperation among the private sector, government, and military, and by discovering and supporting the growth of ventures and startups with outstanding technological capabilities."