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SMBA, MND to Support SME R&D in Defense Field   

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On October 12, SMBA Administrator Kim Dong-Sun and Minister of National Defense Kim Tae-Young signed an MOU at the ministry's grand conference room to jointly promote localization of defense parts and equipment and to support cultivation of competitive SMEs in the defense area. In addition, SMBA and Korea Aerospace Industries (KAI) also concluded an MOU to invest and create a 10 billion won-scale fund.

With organization of a 'Joint Support System for SME Technology Development' through cooperation of SMBA and MND under the MOU, SMEs will be able to receive further support for R&D and expanded opportunities for advance into the defense goods market.

The terms of the MOU also allow the military to introduce excellent technologies and capital from the private sector as well as the government, contributing to the enhancement of combat power through localization of defense parts. By utilizing state-of-the-art technologies in the defense area from a national perspective, the government and private sector also can contribute to the development of the national economy with creation of corporate profits, new jobs, etc.

Among the detailed cooperation methods, SMBA plans to organize the nation's first defense technology development cooperation fund hand-in-hand with defense industry enterprises

As part of its bold initiative, SMBA decided to raise the nation's first defense technology development cooperation fund jointly with defense industry enterprises and support SMEs participating defense R&D with priority. MND also decided to expand the participation of SMEs in defense R&D projects, an area in which SME participation has thus far been more or less sluggish, and to provide excellent military technologies and development information to SMEs.

In his prepared remarks, Minister Kim emphasized, "Localization of core parts and materials is important for the maintenance of military power as well as for development of state-of-the-art weapons systems." He revealed that through cooperation with SMBA, his ministry will increase opportunities for SMEs' participation in the national defense R&D field and cooperate in the identification and competitiveness enhancement and cultivation of excellent SMEs, the driving force for new growth in the national economy.

Administrator Kim also disclosed, "To increase the participation of SMEs as key players in the localization of defense parts and equipment and pursue strategic support, SMBA will continue to expand creation of the R&D cooperation fund for SMEs.

With conclusion of the MOU with MND as momentum, meanwhile, SMBA intends to further increase private-government cooperation business areas in the defense goods field.

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