Although the Army Association and the Organizing Committee of the Korea Defense Industry Exhibition (DX Korea), which had been holding separate ground defense industry shows amid conflict, agreed to merge their shows, the Ministry of National Defense is sticking to its plan to create a new government-led exhibition.
This is seen as a response to domestic companies favoring a government-led show and complaining about damage from the two groups' conflict. The Ministry of National Defense plans to assess the sincerity of the two groups, but with only a few months left until the exhibition, some say swift coordination is needed.
According to the military authorities on the 10th, the Ministry of National Defense finalized a plan to hold a third exhibition at the 12th Defense Industry Development Council meeting held with the Ministry of Trade, Industry and Resources on the 4th.
As with other existing shows, this exhibition would have the Ministry of National Defense support invitations of foreign military officials, and be planned and hosted by the Korea Defense Industry Association (KDIA), which is funded by dues from defense companies. The timing has not been set, but the ministry is aiming to hold it within the year. KINTEX in Goyang, Gyeonggi, is seen as the leading candidate for the venue.
The Ministry of National Defense made this choice because the conflict between the Army Association, which had hosted the ground defense exhibition for more than 10 years, and DX Korea has been unending. The ground defense show had been co-hosted by the Army Association and the DX Korea organizing committee through 2022. But the two groups split over operating rights and other issues, and in 2024 the Army Association held "KADEX," while the organizing committee held its show under the name DX Korea. Korea ended up being the only country in the world to stage "two exhibitions under one roof."
As tensions worsened this year, the Ministry of National Defense summoned the two groups and KDIA three times, including a meeting on the 26th of last month, to mediate. During this process, the ministry conveyed to the two groups that "unless you integrate, there will be no government support except allowing the use of the sponsorship title." But it ultimately fell through. The government then decided to hold a new exhibition sponsored by the government and organized by KDIA.
On the 5th, the day after news broke of the ministry's new exhibition, the Army Association and DX Korea abruptly reversed course and said they would merge their shows. In a joint statement, the two groups said, "The split exhibitions caused confusion for participating corporations and overseas institutions, but with this integration we will pool our capabilities to further strengthen global competitiveness," adding, "We ask KDIA to participate jointly." They plan to hold the integrated show at KINTEX, the DX Korea venue, starting Sept. 16.
Because this announcement was made without consulting the Ministry of National Defense and KDIA, the ministry is maintaining its policy to hold a new exhibition. A ministry official said, "We are aware that the Army Association and DX Korea decided to integrate their shows, but there is no change to the plan decided at the Defense Industry Development Council," adding, "We will prepare measures that help the military and industry, taking into account industry opinions." A military official who requested anonymity said, "After a process to verify whether the two groups' integration plan is sincere, we plan to reassess the need to hold it."
The industry has been continuously requesting a government-led exhibition. In particular, after the Ministry of National Defense's decision on the 4th, when KDIA informed member companies of the new exhibition, domestic companies reportedly said they agreed with a unified, government-led direction.
A representative at a small and midsize defense company said, "With the event split, not only the participation expense burden but also setting marketing and sales strategies had become very difficult." For defense shows, booth costs per square meter are known to be more than three times higher than at general exhibitions.
There were also claims of national budget leakage. Participation fees for system integrators are recognized as defense costs. On top of that, there are government subsidies for small and midsize and midtier corporations. An industry representative said, "Events funded by taxes had drifted into serving the interests of certain groups," adding, "If the government leads the event, defense companies' expense will be reduced, and problems such as the dispersion of foreign military officials and reduced promotional efficiency will disappear."
However, some corporations are still weighing their options between the government and the existing organizers. A representative at a midtier defense company said, "From the defense companies' perspective, we must consider the influence of various stakeholders such as the Army Association and senior military figures," adding, "The sooner the government finalizes the direction, the more the industry's burden will ease."