The Ministry of SMEs and Startups is accelerating the expansion of an open innovation ecosystem with the military and demand corporations to nurture defense startups.
The Ministry of SMEs and Startups (MSS) said on the 15th it will recruit startups to join the public-private open innovation program "Everyone's Challenge-Defense" from the 16th to Aug. 4.
Everyone's Challenge-Defense is a program that supports collaboration between the military and demand corporations that seek to apply new technologies in the defense sector and startups, in order to expand opportunities for innovative startups to enter the defense market.
The Ministry of SMEs and Startups (MSS) significantly expanded support through a supplementary budget. Following support for 10 corporations in the first round of recruitment on Mar. 1, it plans to select about 50 startups this time. Selected corporations will receive up to 100 million won in collaboration funds that can be used for proof of concept (PoC) and prototype production. It also plans to provide linked support for follow-up research and development (R&D) projects such as the Startup Growth Technology Development Project (up to 1 year and 5 months, 200 million won in support) and the Public-Private Joint Technology Commercialization Project (up to 2 years, 600 million won).
The defense market is growing rapidly amid changes in the global security environment. According to the Stockholm International Peace Research Institute (SIPRI) in Sweden, global military expenditure in 2024 was $2.718 trillion (about 4,049 trillion won), up 9.4% from the previous year, marking a record high in the relevant statistics since they were first compiled. Analysts say heightened geopolitical tensions and rising security demand are driving market growth.
The Ministry of SMEs and Startups (MSS) expects that open innovation in the defense sector will quickly solve the technical challenges faced by the military and demand corporations with startups' innovative technologies, while enabling startups to verify their technologies in real operating environments, build collaboration track records, and lay the groundwork for entry into the defense market.
Cho Kyung-won, director general for startup policy at the Ministry of SMEs and Startups (MSS), said, "Because the defense sector demands high reliability and verification, demonstration opportunities and collaboration experience with demand institutions are crucial for startups to enter the defense market," adding, "Through this project, we will connect the military's and demand corporations' infrastructure with startups' innovative technologies and support them so it can lead to commercialization and subsequent growth."