The People Power Party and the government agreed on the 10th that systematic national support is needed for the continued growth of K-defense in the rapidly changing international situation. They noted that they would push for financial support such as temporary authorization of special extended work systems, easing employment restrictions for military personnel and national research institute scientists, and raising guarantee limits for the defense industry.
Kim Sang-hoon, the policy chief of the People Power Party, stated at the 'Party-Government Council for Supporting K-Defense Exports' held at the National Assembly that "Considering the major management project for 2025, if we listen to the industry and government, this year could see record exports as predicted," and added that "the government decided to strengthen various support to enhance the export competitiveness of defense companies."
First, it was emphasized that the government decided to focus on investing in 10 major defense strategic technologies such as artificial intelligence (AI), space, and advanced materials, planning to support over 3 trillion won from 2024 to 2027 to lead future defense science and technology and establish a foundation for developing advanced products.
In this regard, the chairperson stated, "We also decided to promote global value chain projects to support the convenience of domestic small and medium-sized enterprises with competitive materials and components in the defense sector," mentioning that this includes support of up to 5 billion won per company for two years.
They also decided to actively accommodate the industry's request to utilize the special extended working hours system. The chairperson stated, "From the defense industry's perspective, there is a need to actively utilize the special extended working hours system, and we have requested support from the government, and the Minister of Employment and Labor responded that they would support as actively as possible." Commissioner Seong Il-jong also noted, "There were significant difficulties related to special extended working hours, but Minister Kim Moon-soo stated that he would take responsibility and resolve this matter."
The government emphasized that it has been actively granting special extended working hours within 180 days since last year to respond to the surging demands for overseas exports from the defense industry. Minister of Employment and Labor Kim Moon-soo stated, "I believe there are no cases where production and export cannot proceed because the Ministry of Employment and Labor has not granted authorization within the current 180 days."
The party and government discussed measures to ease employment restrictions for military personnel and national research institute scientists upon retirement. According to the current Public Officials Ethics Act, employment for military personnel is restricted, which the party and government recognize as an obstacle to the growth of the defense industry. Commissioner Seong stated, "When military personnel work in special professions and retire, there are no restrictions on employment abroad. However, domestic corporations must undergo scrutiny regarding this issue, and the regulations are being operated rigorously," and he added that "there was a statement from the Human Resources Innovation Agency that they would make a breakthrough in this area."
They also decided to strengthen financial support for the defense industry. The chairperson stated, "We will take measures to actively support through institutions such as the Export-Import Bank of Korea and the Korea Trade Insurance Corporation," and added, "The industry had several requests such as raising the guarantee limit, and the government responded that it would provide sufficient support regarding this."
They urged the Democratic Party to cooperate in the appointment of the currently vacant Minister of National Defense and the repeal of regulations concerning the defense industry. Commissioner Seong stated, "The Minister of National Defense plays a crucial role in (defense) sales," and requested that "Representative Lee Jae-myung should decide quickly so that K-defense can soar globally." He also referred to the Democratic Party's push for an amendment to the Defense Acquisition Act, which would require National Assembly approval for the export of defense goods, stating, "If this bill is not repealed, defense companies will have to obtain National Assembly approval to sell any materials. This is an unacceptable bill," and he requested that "this bill also be repealed in a timely manner."