KDIA Official Says Korean Defense Industry Leading Economic Growth

The Korean defense industry is growing rapidly as the world recognizes the excellence of Korean-made weapons. At the center of the Korean Defense Industry gripping the global arms market is the Korea Defense Industry Association (KDIA).

Founded in 1976, the KDIA is a specialized defense industry organization that supports its members to promote defense and create conditions for export expansion. Business Korea interviewed Park Dong-won, managing director of the KDIA, to learn more about the KDIA’s work and roles.

Q: Over the years, Korea’s defense industry has made remarkable progress as a high-tech strategic industry. We believe the KDIA has played a major role in driving the growth of the Korean defense industry. What is your assessment of this?

A: Recently, security concerns have been growing around the world. The war between Russia and Ukraine, the armed conflict in Armenia and Azerbaijan, and the Israeli-Palestinian war have led many countries to strengthen their defense capabilities. North Korea’s aggressive missile tests and nuclear development ambitions have further ratcheted up military tensions in East Asia. In the midst of this, we continue to hear good news about the Korean defense industry with large export contracts for the K2 tank, the K9 self-propelled howitzer, and the FA-50 light attack aircraft in Egypt, the UAE, and Poland.

This was the result of a lot of effort by defense science and technology researchers who risked a lot in the field of defense research and development over the past 60 years, defense industry officials who produced cost-effective weapon systems using the developed technologies. The Korean government’s policies have consistently promoted technology development and fostered the Korean defense industry in a short period of time. As the Korean defense industry’s long and steady preparations to enter the global defense market are finally being recognized, I believe that in order to sustain this move for a long time, it is necessary for Korea to further expand and strengthen defense ecosystems by achieving technological advancement in the fields of materials, parts, and equipment for defense systems and securing the ability to develop core technologies.

Q: For the development of the Korean defense industry, we should focus on policy development, promotion, and institutional improvement. Among them, defense exports are considered the most important. What is the KDIA concentrating on to achieve this?

A: Korean weapons feature not only excellent performance, but fast delivery and strong follow-up military support. This fact is drawing much attention from countries in Eastern Europe, Southeast Asia, and the Middle East that need to beef up their armed forces in a short period of time. In order to continue these positive responses toward Korean weapons, the KDIA plans to fully support Korean defense companies’ entry into Europe by expanding exchanges with defense industry associations in European countries and developing cooperation projects. In addition, if the Korean government selects key figures from potential export destination nations and arranges invitations and meetings, the KDIA will continue active cooperation by matching potential export destination nations’ associations, institutions, and companies with Korean partners capable of industrial cooperation so that business can begin and grow.

Q: In order to foster the Korean defense industry as a national strategic industry, isn’t it also a very important task for the KDIA to become a bridge between the military as a consumer and the defense industry as a supplier? What do you think about this?

A: It is now clear that the Korean defense industry is a great driver of Korea’s economic growth beyond contributing to boosting Korea’s military power. We need to create an environment where Korean defense industry researchers can conduct research and development freely and actively in order to transform Korea into a first mover in the changing global security environment. To create such an environment, we plan to work with the Korean government and related Korean organizations to continue communications in areas such as policy development, integrity, and security. In addition, we are helping technologically advanced small and medium-sized enterprises (SMEs) enter overseas markets by establishing Korea pavilions at overseas exhibitions. We are actively providing opinions on legal and institutional improvements necessary for Korean defense companies to conduct export activities. While leading Korean defense companies are engaged in fierce competition to find new markets around the world, we will continue to strengthen our support and hold meetings and events to glean opinions to develop policies to drive the growth of the Korean defense industry and expand Korean defense companies’ exports.

Q: What is the most memorable achievement of the KDIA this year?

A: Following last year, the KDIA made many great achievements in the defense industry sector this year, including the delivery of the first batch of exports to Poland as planned and the development of future-oriented strategic partnerships with various countries around the world such as Saudi Arabia and Qatar. President Yoon Suk-yeol’s official state visits to Saudi Arabia and Qatar resulted in a large-scale defense cooperation worth over 20 trillion won between Korea and the two Middle East kingdoms. More specifically, an amendment to the Defense Acquisition Program Act, an important bill that will affect the entire defense industry sector of Korea, passed a plenary session of the National Assembly on Oct. 6 and will come into effect beginning from 2024. Public hearings are currently being held to prepare subordinate legislation. If the act takes effect, it will create a better R&D environment for the future, enabling Korea to transform into a first mover in the changing global security environment.

Another achievement is the establishment of Defense Industry Day. On July 8, 1592, the day of the Sacheon Naval Battle, Admiral Yi Sun-sin sent Turtle Ships into battle for the first time and destroyed 13 enemy warships. Against this backdrop, the Korean government officially designated July 8 as Defense Industry Day. In honor of this significant day, when the Turtle Ships designed and built with Korea’s own technology won a naval battle for the first time, we celebrate July 8 as Defense Industry Day. We believe that this day will serve as an opportunity to honor painstaking efforts made by those in the Korean defense industry and instill strong pride in those who have dedicated themselves to Korea’s self-defense and strived for national economic development while enhancing the brand image of Korea’s defense industry internationally.