As President Lee Jae-myung emphasized the nurturing of defense small and medium-sized enterprises and startups, interest is focusing on ways to realize this.
During the discussion for the '1st Defense Industry Day' on the 8th, President Lee noted, "There is criticism that the Korean defense industry is centered around a few large corporations, and there is a need to establish an ecosystem that allows corporations to participate regardless of their size."
He added, "Since the defense industry requires creative and flexible thinking, opportunities must be provided to small and venture enterprises." President Lee also emphasized the entry of Korean defense into the 'global top four powers,' stating that the defense industry is not just about security, but also about the food industry.
Defense experts unanimously expressed that "the collaborative structure between existing large defense corporations and small and medium-sized enterprises in Korea should be maintained, but an ecosystem should be established where innovative small and medium-sized enterprises and startups can develop new technologies that large corporations cannot."
The current Korean defense industry is structured such that large corporations manufacture finished goods weapons systems, while collaborating small and medium-sized enterprises produce and supply parts.
◇Limitations on large corporations' technology development, strengthening the role of small and medium-sized enterprises
Former Defense Acquisition Program Administration Administrator Kang Eun-ho emphasized the role of innovative small and medium-sized enterprises and startups that can respond quickly to technology development and participate in the defense ecosystem.
Kang noted, "There are limits to large defense corporations developing all technologies" and cited unmanned systems equipped with AI technology as an example.
He stated, "Unmanned systems with AI-based autonomous flight software are progressing at an alarming rate, and large corporations cannot keep up with this pace," adding, "AI technology startups are emerging, and through technological collaboration with them, we must produce finished goods unmanned systems to keep up with the global technology development pace."
He further added, "We must establish a system so that small and medium-sized enterprises' technologies are not misappropriated by large corporations during the technology collaboration process."
Professor Jang Won-jun of Jeonbuk National University stated, "It is necessary to establish a system where innovative startups and small and medium-sized enterprises can actually participate in government weapons systems development."
Professor Jang remarked, "When developing military weapons systems, the government requires corporations to have existing development participation records, thus creating a structural limitation for existing corporations to once again participate in weapons systems development," adding, "We must cultivate a robust and innovative defense ecosystem through the participation of new corporations." He noted that "activating a competitive system through the participation of new corporations is also possible."
◇Establishing a Korean-style Defense Innovation Unit...Investment in innovative startups is necessary
Professor Jang emphasized, "Establishing a Korean-style Defense Innovation Unit (Defense Innovation Unit·DIU) should also be considered." The DIU under the Ministry of National Defense of the United States is an organization that quickly applies advanced technologies held by innovative startups and big tech companies to the military.
Kim Seung-jo, former president of the Korea Aerospace Research Institute (KARI), emphasized investment in startups in the defense sector. He stated, "The defense sector has the disadvantage of having demand limited to the government and military," adding, "It is not easy for newly established corporations to seize opportunities to supply weapons systems to the government."
Due to this background, there are not many startups in the defense sector domestically, and investment is also not being effectively made. While exports led by large defense corporations such as Hanwha Aerospace and Hyundai Rotem are increasing, it is also a reason why it is difficult to find new innovative small and medium-sized enterprises and startups.
Kim noted, "Defense startups need to engage in businesses that can cater to both civilian and military needs from the early stages of establishment," adding, "When we look at defense companies that have grown into global corporations, they all conduct civilian-military projects."
Kim also remarked, "The government aims to install an inter-agency control tower with the goal of becoming a top four defense power, and it is important that the voices of small and medium-sized enterprises and startups are properly conveyed to this control tower."