South Korea, aiming to ascend to the upper position of global defense exporters, announced a comprehensive plan to insure domestic defense companies’ exports, exceeding 7 trillion won ($5 billion) this year. This initiative, detailed by the Ministry of Trade, Industry and Energy (MOTIE) on Wednesday, seeks to position South Korea among the world’s top four defense system exporters.
The ministry’s statement elaborates on the scope of this support, specifically to ensure timely fulfillment of defense contracts from nations such as Poland. “To ensure (Korean) companies fulfill the defense orders received from Poland and other countries without delay, (the government) will strengthen financial support to defense companies, including expanding trade insurance coverage to more than 7 trillion won this year,” according to the statement.
Following an array of measures to cultivate domestic defense manufacturers, the South Korean government will lead an investment initiative, directing 400 billion won (about $300 million) into firms specializing in cutting-edge technologies across aerospace, artificial intelligence, both manned and unmanned aerial vehicles, semiconductors, and robotics.
The establishment of the nation’s inaugural defense industry-specific fund aims to secure at least 36 billion won within the year to bolster research and development alongside business expansion in the defense sector. A government official stated that, this fund will serve as a cornerstone for sustained innovation and advancement within the defense industry.
The support system will engage multiple sectors including government departments, academic institutions, the private sector, and state-run agencies such as the Ministry of National Defense, the Ministry of SMEs and Startups, the Export-Import Bank of Korea, and the Korea Defense Industry Association. The strategy also encompasses talent development, aiming to nurture over 2,000 professionals annually within the defense sector.
South Korea’s ascent as a prominent defense system exporter is marked by securing multi-billion dollar agreements for fighter jets, armored vehicles, and missile interceptors with countries including Poland, Australia, Egypt, and Middle Eastern nations, asserting its stature as a significant force in the global defense trade.
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