Page 142 - 2018 Defense White Paper

and establish the appropriate scope of responsibility-sharing between system suppliers and their

contractors. By doing so, the MND aims to strengthen the mutually benef icial cooperation
between large corporations and SMEs and thus, promote cooperative partnerships between
them, and systemically nurture the defense industry.

| Vitalizing Defense Exports | Exports of defense articles have contributed to the strengthening
of national defense capabilities and the enhancement of economic vitality by keeping defense

contractors operating and creating quality jobs. They have also played an important role in
contributing to the expansion of defense cooperation with partner countries. To assist the
domestic defense industry in becoming globally competitive, the ROK government has, so far,

supported R&D for the remodeling and development of defense articles for export; established
intergovernmental cooperation channels, such as the Memoranda of Understanding (MOUs),
signed with foreign governments for defense industrial cooperation; and assisted SMEs’ entry
into overseas mar kets. In 2017, defense exports reached USD 3.12 billion, which is 10 times or

more than the amount in 2006. [Chart 4-10] shows the growth in defense exports.
A remarkable growth in defense exports both in quantity and quality has been achieved—the

range of target countries for exports expanded from those in North America to Asia, and the
categories of export items became more advanced from being ammunition and f irearm centered
to expanding the range of maneuver, f ires, aviation, etc.

[ Chart 4-10 ] Changes in Defense Exports
Unit: USD 100 million
40 36.1
34.2 35.4
31.2
30
25.6
23.8 23.5
20
11.7 11.9
10.3
8.4
10
2.5
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Following the recent intensif ication of competition in the global defense export market and
the diversif ication of customer countries’ requirements, there is a need for policy changes to

140 Chapter 4 Building Elite Armed Forces Using Advanced Technology