The Ministry of SMEs and Startups and the Defense Acquisition Program Administration unveiled a plan to nurture 100 defense startups and 30 "venture 100-billion corporations" by 2030. The aim is to crack the defense industry structure long centered on manufacturing and large corporations and put advanced-technology startups such as artificial intelligence (AI) and drones at the forefront.
The two ministries announced the "defense startup promotion plan" on the 23rd. It is a follow-up to the national startup era strategy meeting presided over by the president on the 30th. For the first time, they also established a policy cooperation system with six institutions, including the Korea Institute of Startup and Entrepreneurship Development (KISED) and the Agency for Defense Development (ADD).
The government's sense of the problem is clear. Modern warfare is being reorganized around AI- and data-based tactics. The judgment is that the existing supply structure centered on system integrators will struggle to keep up with the pace of change. In the United States, corporations such as Shield AI, Anduril, and Palantir have established themselves as a pillar of defense by putting forward autonomous flight drones and AI tactical software. With an average history of around 10 years, these corporations are rapidly transplanting civilian technology into the military domain and changing the game.
In Korea as well, Nearthlab, Pablo Air, and GenGenAI are targeting both civilian and military markets in drones and synthetic data. However, complex defense acquisition procedures, low information accessibility, and security regulations remain high hurdles. Gaps are also widening among defense-participating corporations.
The government said it would address this with a three-stage strategy of "entry, growth, and coexistence."
First, through the "defense startup challenge," the Army, Navy, Air Force, and system corporations will collaborate directly with startups. Outstanding corporations will be given opportunities for military demonstrations, and system corporations will receive extra points in the co-prosperity evaluation. In drones, robots, and AI, a contest-style acquisition system will be introduced in which suppliers propose concepts for weapons systems.
Access to military data will also be expanded. Through the "defense AX hub," military demand and data will be provided, and defense-related infrastructure and support program information will be integrated into the K-startup comprehensive portal. Support for security infrastructure will also be strengthened.
The startup foundation will also be broadened. A "defense startup-centered university" will be established to connect deep-tech experts from universities and research institutes with defense domain experts from the military and the National Defense University. The aim is to build a full-cycle collaboration structure linking research and development (R&D), demonstration, and startup creation. A specialized curriculum connecting the Youth Startup Academy and defense vocational schools will also be newly established.
At the growth stage, package support will be promoted from R&D to mass production. One creative economy innovation center will be designated as the "K-defense startup hub," and mergers and acquisitions (M&A) with small and midsize defense manufacturing companies will be supported. Investment and export linkages will also be facilitated through the "Next Unicorn Project Fund" and the "GVC30 Project."
Regional expansion will proceed in parallel. Defense innovation clusters linked to specialized industries such as shipbuilding, semiconductors, and AI will be expanded, and a cluster in the naval vessel MRO field, in step with Korea-U.S. shipbuilding cooperation, will also be pursued. The supply system for defense specialists connected with regional hub universities will be strengthened.
Bridging the gap between large and small corporations was also presented as a task. A co-prosperity level assessment will be conducted for 15 system corporations, and outstanding corporations will receive incentives in cost estimation and offset trade for exports.
A domestic parts integrated databases (DB) will be built and applied first to weapons systems, and parts requiring additional verification will be applied under a government procurement method with the government taking responsibility.
Minister Han Seong-sook of the Ministry of SMEs and Startups (MSS) said, "Now is the time to lead military demand and lay the foundation for defense unicorns that can compete on the global stage." Lee Yong-chul, head of the Defense Acquisition Program Administration, also said, "We will add policy priming water to the innovative ideas of startups."