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Defense Industry | Defense Acquisition Program Administration

IMPORTANCE OF PROMOTING DEFENSE INDUSTRY

Unstable international security circumstances and North Korea’s constant provocations and threats have highlighted the need for a strong military which safeguards peace on the Korean Peninsula.
As such, through the creation of a challenging R&D environment, cutting-edge weapon systems, which are suitable for strong forces with science and technology prowess, need to be rapidly deployed. Export of such systems will lead to economies of scale which can enhance product competitiveness and build a virtuous cycle of reinforcing combat power. All this explains why it is necessary to promote the defense industry on the global stage by rapidly building cutting-edge combat power. In addition, the defense industry which acts as a basis for national defense should no longer be considered simply as a type of industry, but should be strategically promoted as a national strategic industry.
Especially, the record-breaking defense exports, which show the exponentially growing global arms market and the advent of K-Defense, offer a hint for the industry’s infinite growth potential in the future. Therefore, it is crucial to promote the national defense industry to secure global competitiveness.

POLICY DIRECTIONS FOR DEFENSE INDUSTRY

DAPA has established and pursued the four core policy directions in an effort to promote the defense industry on the global stage by building cutting-edge combat power in a rapid manner.

Lay Foundation for Industrial Innovation to Build Strong Military with Science and Technology Prowess

DAPA will spare no effort in improving procurement processes for rapid deployment of weapon systems in order to adopt cutting-edge technologies in a swift manner. To this end, DAPA will cut the acquisition period by newly creating “rapid requirements” and adopting the private sector’s high readiness technologies or ones proved as critical technologies. This will lay the foundation for innovation in the defense industry through rapid deployment of the latest weapon systems.

Spur Challenge-driven, Open, and Convergent Defense R&D Innovation

DAPA will make intensive investment in the development of state-of-the-art technologies by shifting to a technology-driven, cutting-edge, and capability-centered planning system. In the areas of critical technology development, an open R&D model will be expanded through the introduction of a planning system open to the private sector. Plus, a challenge-driven R&D environment will be created by establishing an environment for convergence of materials, parts, and equipment industries through innovation in the Parts Localization R&D Support Process.

Support Sustainable Growth of Defense Industry

DAPA will intensively nurture the state-of-the-art, strategic defense industry by means of support for innovative growth of space defense companies and the 100 Innovative Defense Companies Project. By expanding the establishment of specialized clusters in connection with key regional industries, DAPA will create an ecosystem for mutual cooperation between large and small companies. In addition, by reinforcing financial support for the defense industry, DAPA will support sustainable growth of the industry by stimulating corporate-led R&D investment.

Advance Defense Exports as National Strategic Industry

DAPA aims to expand the ROK-US cooperation in the defense industry by newly creating a global supply chain project. To strengthen customized support for arms exports, DAPA will materialize the Bilateral SWAP and the Bilateral SWAP with the Third Party in the export industrial cooperation.
In addition, a control tower will be set up to strengthen pan-government support for defense exports.