Page 199 - 2020 Defence White Paper

In 2015, the Defense Management Efficiency Inspection Committee was
transformed into the "Defense Fiscal Reform Promotion Group" to go beyond the
simple streamlining of defense management and focus on fundamental financial
reforms. The Defense Fiscal Reform Promotion Group selects projects that have a
significant impact on defense finance and require fundamental system improvement,
and reviews and manages 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 flexibly to changes in the defense environment and
to reasonably allocate and manage limited defense financial resources. In 2017, the
MND replaced troops serving in the field of combat service support, such as those
responsible for sales at military supermarkets and administration at military welfare
centers, with civilian workforce, thereby improving efficiency in troop operations
and contributing to the ROK government’s job creation policy. Chapter 5
In 2018, the MND improved the procurement support system such as com-
mercialization of military supplies to procure superior munitions, coordinated and
integrated installation projects at each military base, and entrusted the management
and operation of military housing facilities to the private sector, which resulted in
the efficient operation of troops and financial savings. In 2019, a defense operation
system suitable for the Fourth Industrial Revolution was formulated with the use of
future core technologies, such as expanding defense cloud services and providing
solutions for pipe leaks in military premises using big data. The system has laid the
foundation for budget reduction.

In 2020, an upgrade was made in the operation system after applying the core
technologies of the Fourth Industrial Revolution–such as the use of IoT and smart
logistics warehouses–to defense operations, thereby reducing costs. In addition, the
MND enhanced the effectiveness of overall operations by improving the efficiency
of defense resources utilizing private resources and by refining the defense system
and operation method.
Along with such efforts, the MND will continue to implement intensive fiscal
reforms for high-efficiency defense management by removing inefficient elements in
overall defense.

Operation of the Military Executive To increase the efficiency and expertise
Agency System of defense operation and the quality of
defense services, the MND has design-
ated and is operating organizations, whose responsibilities are business-like and

Chapter 5. Establishing a Fair, Transparent, and Efficient National Defense Operation System 197