Page 186 - 2020 Defence White Paper

actively utilized in the basic research field for defense R&D within the framework of
the "Strategy for Future Defense Development Based on Science and Technology"
which was formulated in April 2018 by the MND, the MSIT, and the DAPA.
Measures are also taken to devise a collaboration system under which the strengths
of national R&D and defense R&D are mutually and actively utilized.

4. Building a Competitive Defense Industry and Vitalizing Defense
Export

Bolstering Competitiveness by The defense industry is the cornerstone of
Establishing a Foundation for national security. By acquiring and supply-
Vigorous Growth of the ing weapons systems with performance and
Defense Industry quality that meet the standard of the ROK
Armed Forces on time, the defense industry
has played a key role of laying a foundation for the buildup of military strength and
the realization of steadfast defense. The defense industry is characterized by a
monopoly on demand where the government is the only consumer and by the few
number of defense companies compared to other private industries. These
characteristics make the scale of production in the domestic defense industry closely
linked to policy line changes. Thus, the government̓s role in fostering and developing
the defense industry is crucial.
Since the launching of the DAPA in 2006, there has been a call for providing

differentiated support foundation which is in line with the characteristics of the
defense industry, where the government is the sole consumer. As a result, the "Act on
the Development and Support of the Defense Industry" was enacted in 2020 which
stipulates various systems, while separating the clauses related to the development of
the defense industry from the "Defense Acquisition Program Act". Thus, full policy
support measures were mapped out to strengthen the competitiveness of the defense
industry and to take the leap from a domestic oriented-industry to an export-oriented
industry.
Aside from these measures, the ROK government carries out the "Basic Plan
for Defense Industry Promotion" every five years to present basic policies and
mid- to long-term directions for supporting and fostering the defense industry in a
reasonable manner. The "Basic Plan for Defense Industry Promotion for 2018-2022"
aims to acquire advanced weapons system development capabilities and bolster
global competitiveness. It covers the criteria of creating a developmental ecosystem

184 2020 Defense White Paper