The Korean government and major defense contractors will jointly fund research and development costs for small and medium-sized enterprises seeking to localize defense industry components.
The Defense Acquisition Program Administration announced it will issue revised regulations for weapons system parts localization development management on the 11th.
Under the revised regulations, the cooperative parts localization support program will combine contributions from large defense contractors' mutual cooperation funds with government subsidies at a 1-to-1 ratio to jointly support R&D costs for SME parts manufacturers.
The new support system aims to help SMEs reliably develop core weapons system components needed by prime contractors, with joint backing from the government and large corporations, as Korea strengthens its global defense industry standing.
"Through the cooperative parts localization support program, large companies are expected to enhance supply chain stability while SMEs gain a foundation to grow into strong specialized firms," said Choi Eun-sik, Director General of the Defense Industry Promotion Bureau at the Defense Acquisition Program Administration.