Page 168 - 2018 Defense White Paper

domestic investment in the fund will be maintained at an annual average of 81% to ensure stable

business conditions for defense contractors, thereby bolstering the foundation of the domestic
defense industry and its competitiveness.

4. Efficient Defense Management

| Implementing Defense Fiscal Reform | To spread advanced management techniques
within the military and increase the eff iciency of defense operations, the “Defense Management
Eff iciency Inspection Committee,” presided by the Vice Minister of National Defense and

joined by civilian experts, has been in operation since 2013. The committee is the first group
to conduct preliminary feasibility studies and in-depth evaluations of force operations projects.
With groups of civilian experts, the committee has selected and implemented tasks in areas of
logistics innovation including procurement, repair parts, and distribution.

In 2015, the Defense Management Eff iciency Inspection Committee was transformed into
the Defense Fiscal Reform Promotion Group to go beyond the simple streamlining of defense

management and focus on fundamental f inancial reforms. The Defense Fiscal Reform Promotion
Group has selected projects that signif icantly impact defense f inance and require fundamental
system improvement, and has regularly reviewed and managed them.
In 2016, the MND implemented in phases measures for developing the defense planning and

management program, including the optimization of the planning document system, to respond
f lexibly to changes in the defense environment and to reasonably allocate and manage limited
defense f inancial resources. In 2017, the MND replaced troops serving in the f ield of combat

service support, such as those responsible for sales at military supermarkets and administration
at military welfare centers with civilian personnel, thereby improving eff iciency in troop
operations and contributing to the government’s job creation policy.

In 2018, the MND updated the military telephone switchboard system to reduce telephone
switchboard operating costs and the number of operators. The MND also has been carrying
out a program that contracts out the management of military housing facilities spread across

the country to civilian entities to reduce management workforce and labor costs. The MND has
been implementing f inancial reforms with an emphasis on maximizing the outcomes of f inancial
reforms by identifying and eliminating waste of resources as well as ineff iciencies across all areas

166 Chapter 4 Building Elite Armed Forces Using Advanced Technology