The South Korean presidential office convened a meeting on Wednesday to discuss collaborative growth strategies within the defense industry, bringing together leading defense contractors and key government agencies.
Senior Presidential Secretary for Economic Growth, Ha Joon-kyung, presided over the meeting, which included representatives from prominent defense firms such as Hanwha Aerospace, Hyundai Rotem, LIG Nex1, Hanwha Systems, and Korea Aerospace Industries. Officials from the Ministry of SMEs and Startups, as well as the Defense Acquisition Program Administration, also participated.
Attendees presented initiatives designed to foster cooperation between major defense companies and their smaller industry partners, showcasing successful examples of collaborative efforts.
“Today’s session aimed to assess the government’s ongoing initiatives to encourage shared prosperity in the defense sector and to highlight the co-growth strategies and best practices of the five major defense corporations,” stated Ha Joon-kyung.
He further emphasized, “Defense is a critical industry underpinning national security and a strategic sector driving cutting-edge technologies. Its competitiveness cannot be achieved by large companies alone. Sustainable supply chains, enhanced quality, and technological advancements depend on collaborative growth with small and medium-sized enterprises and startups.”
These efforts align with the government’s broader “co-growth strategy for large and small companies,” introduced in January, aiming to extend cooperative ecosystems beyond traditional manufacturing into sectors like defense, platform technologies, and finance.
In February, six institutions—including the Korea Institute of Startup & Entrepreneurship Development, the Korea Technology and Information Promotion Agency for SMEs, the Korea Commission for Corporate Partnership, the Agency for Defense Development, the Defense Agency for Technology and Quality, and the Korea Research Institute for Defense Technology Planning and Advancement—formalized a memorandum of understanding to bolster defense startups and introduced a comprehensive support package.
The five leading defense companies plan to collectively invest 642.7 billion won ($432 million) this year in shared growth programs. These initiatives encompass joint research and development projects, financial assistance, and support for overseas expansion for SMEs and startups.
Specifically, 145 billion won will be allocated to joint R&D projects focused on localizing defense components, while 481.4 billion won will be directed towards financial support to strengthen the stability and independence of smaller businesses within the defense supply chain.
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