Page 187 - 2020 Defence White Paper

of the defense industry, strengthening defense R&D capabilities, fostering promising
small and medium-sized enterprises (SMEs) and ventures, transforming into an
export-oriented industrial structure, and creating quality jobs.
Furthermore, the ROK government is in the process of reinforcing its support for
domestic development and production of weapons systems, improving defense cost
structures, improving the designation system for defense products and companies,
strengthening defense statistics research and analysis capabilities, and establishing
effective communication and information exchange measures with the defense
industry. Moreover, a defense venture support program and a global defense small
giants promotion support program are underway to foster promising SMEs and
ventures, and the "defense innovation cluster program" is being promoted so that
these programs are carried out in an integrated manner. The defense innovation
cluster program is a program that creates a cluster where the defense industry
production system, science and technology system, enterprise support system, and Chapter 5
the military system are combined in an efficient manner. This cluster not only carries
out defense activities such as establishing a roadmap for region-tailored defense
parts, organizing and operating a consultative body for localization, and operating
a laboratory for the localization of defense parts but also serves as a support hub for
fostering SMEs and ventures by promoting a conduit for providing comprehensive
support for SMEs and regional job-specific programs.
In addition, the ROK government is implementing a preemptive quality control
policy to improve the reliability of weapons systems through the stabilization
of quality and safety control systems. The government is also expanding the

management area and is establishing a precautionary system to reinforce the safety
system.

Vitalizing Defense Exports Export of defense articles not only strengthens
the country’s defense capabilities but also vital-
izes the economy as it maintains the operation rate of the defense industry and
creates high-quality jobs by addressing the shortage-of-demand issue through
market expansion. Defense exports further contribute to the expansion of defense
cooperation with partner countries.
The ROK government has established intergovernmental cooperation channels
by creating a joint committee for defense industry and logistics and signing defense
cooperation MOUs. It also has actively assisted the domestic defense industry in
becoming globally competitive through efforts such as giving support for remodeling
and development projects for export, reducing technical fees upon export, and

Chapter 5. Establishing a Fair, Transparent, and Efficient National Defense Operation System 185