Presidential office reviews defense industry co-growth plans

The presidential office said Wednesday it held a meeting to review co-growth strategies in the defense industry, bringing together major defense firms and relevant government agencies.

The meeting, chaired by Senior Presidential Secretary for Economic Growth Ha Joon-kyung, was attended by officials from Hanwha Aerospace, Hyundai Rotem, LIG Nex1, Hanwha Systems and Korea Aerospace Industries, along with representatives from the Ministry of SMEs and Startups and the Defense Acquisition Program Administration.

Participants presented plans to promote cooperation between large firms and smaller partners in the defense sector and shared best practices.

“Today’s meeting was held to review the government’s efforts to promote shared growth in the defense industry and to share the co-growth plans and best practices of the five major defense companies,” Ha said.

“Defense is a key industry underpinning national security and a strategic sector driving advanced technologies,” he added. “Its competitiveness cannot be secured by large companies alone. Sustainable supply chains, quality improvements and technological advancement require joint growth with small and medium-sized enterprises and startups.”

The efforts are part of the government’s broader “co-growth strategy for large and small companies” announced in January, which aims to expand cooperation ecosystems beyond traditional manufacturing into sectors such as defense, platforms and finance.

In February, six institutions — including the Korea Institute of Startup & Entrepreneurship Development, the Korea Technology and Information Promotion Agency for SMEs, the Korea Commission for Corporate Partnership, the Agency for Defense Development, the Defense Agency for Technology and Quality, and the Korea Research Institute for Defense Technology Planning and Advancement — signed a memorandum of understanding to support defense startups and unveiled a comprehensive support package.

The five major defense firms plan to invest a combined 642.7 billion won ($432 million) this year in co-growth initiatives, including joint research and development, financial support and overseas expansion for SMEs and startups.

Of the total, 145 billion won will be allocated to joint R&D projects aimed at localizing defense components, while 481.4 billion won will be used to provide financial support to strengthen the stability and self-reliance of smaller firms.