A revised "Act on Defense Industry Development and Support" aimed at easing the burden on small and medium-sized enterprises (SMEs) and venture firms participating in the defense industry will be promulgated this month, the Defense Acquisition Program Administration (DAPA) said Monday.
The revised defense industry development law, which passed the National Assembly's plenary session on the 18th of last month and was approved at a Cabinet meeting on the 30th, established a legal basis for partially compensating SMEs and venture firms for costs incurred during test evaluations for procurement projects or participation in defense promotion projects.
The revision established grounds to partially compensate costs in cases where a company received a "suitable for combat use" rating in a domestic procurement test evaluation but was not selected as a contract awardee, or met the passing standards in a defense promotion project evaluation but was not ultimately selected.
The revised defense industry development law will take effect from the first quarter of next year. DAPA plans to determine detailed matters, including the targets, standards, and procedures for cost compensation, through a public notice in the second half of this year.
"This law revision is a practical support measure to lower the barriers to defense industry entry faced by SMEs and venture firms and to ease their cost burden," DAPA Commissioner Lee Yong-cheol said.
