The Ministry of SMEs and Startups and the Defense Acquisition Program Administration have rolled up their sleeves to help innovative small businesses with advanced technologies enter the defense industry market. They are determined to lower market entry barriers and achieve a "leap to the global top four defense powers."
The Ministry of SMEs and Startups and the Defense Acquisition Program Administration said on the 6th that they discussed ways to ease entry barriers for venture companies into the defense sector and to pioneer global defense markets with INNOBIZ companies and defense-innovation companies.
On the 5th, the Ministry of SMEs and Startups (MSS) and the Defense Acquisition Program Administration jointly announced a "defense startup nurturing plan." The INNOBIZ Association and the Association of Defense Innovation Companies also signed a memorandum of understanding (MOU) for cooperation, including discovering cooperative projects to commercialize technologies in the defense sector and opening sales channels at home and abroad.
Despite its high added value, the defense industry has been difficult for small businesses to enter. A solid, large-conglomerate-centered vertical integration and stringent defense standard certifications have been cited as entry barriers. Recently, however, the global defense market has expanded into advanced technology fields such as artificial intelligence (AI), drones, and robots, and as the need to introduce civilian technologies into defense has grown, demand for small businesses to participate in the market has also increased.
The Ministry of SMEs and Startups (MSS) and the Defense Acquisition Program Administration set a goal of a "leap to the global top four defense powers through a grand transformation of the defense industry." They plan to strengthen cooperation from nurturing defense startups to commercializing technologies in the defense sector by innovative small businesses, expanding market entry, and pioneering global defense markets.
Minister Han Seong-sook said, "As the defense paradigm shifts from 'economies of scale' to 'speed of innovation,' new opportunities are opening up for small and mid-sized venture companies with creative ideas, agility, and proprietary technological capabilities," adding, "We will support capable small and mid-sized venture companies so they can emerge as the core of the global defense market, from research and development (R&D) to commercialization and opening overseas sales channels."
Defense Acquisition Program Administration Commissioner Lee Yong-chul noted, "This agreement is meaningful in that it strengthened linkages between private associations so that technology-innovation small businesses can enter the defense sector," and added, "The government will also expand the participation of innovative companies by improving conditions for defense entry and strengthening support systems."