Strategies for Promoting the Defense Industry through Facilitation of Rapid Acquisition Pilot Projects in Korea

Won-Joon Jang () and Jae Pil Song
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Won-Joon Jang: Korea Institute for Industrial Economics and Trade, Postal: Sejong National Research Complex, Korea Institute for Industrial Economics and Trade, 370 Sicheong Dae-ro C-dong 8-12F 30147, Republic of Korea, http://www.kiet.re.kr
Jae Pil Song: Korea Institute for Industrial Economics and Trade, Postal: Sejong National Research Complex, Korea Institute for Industrial Economics and Trade, 370 Sicheong Dae-ro C-dong 8-12F 30147, Republic of Korea, http://www.kiet.re.kr

No 22-12, Industrial Economic Review from Korea Institute for Industrial Economics and Trade

Abstract: In May 2022, the new Yoon Suk-yeol government has presented a new goal for national defense dubbed the AI Science and Technology Strong Force, and announced that it will reform the overall defense R&D system so that civilian technology can be applied to defense in a timely manner. In particular, the new government plans to establish a new Defense Force Augmentation Process so that rapidly developing science and technologies can be utilized promptly. From 2017 to 2021, arms exports from the Republic of Korea (RoK) increased by 177 percent compared to the previous five years from 2012 to 2016, ranking eighth in the world. During the same period, RoK’s share of the global arms export market share was 2.8 percent. Despite this surprising performance in arms exports, the RoK defense industry is mired in a slow, rigid, and expensive weapon acquisition structure today compared to the USA and other advanced countries. If it continues to rely on this traditional acquisition system, it will be very difficult to quickly apply cutting edge technologies to the defense sector to foster the AI S&T Strong Force. Given the above, the purpose of this study is to examine the feasibility of a rapid acquisition system in Korea, which is essential to innovate defense industry into a global leading industry in the future. This study examines recent trends in global defense innovation, including the rapid acquisition system, and overviews the current status and problems of the Rapid Acquisition Pilot Project that began in 2020. Based on the results of the analysis, this paper presents policy recommendations for a rapid acquisition system at the level of advanced countries in the near future.

Keywords: defense; defense industry; rapid acquisition; defense innovation; defense sector; arms manufacturing; arms exports; defense exports; Korea; defense R&D; R&D (search for similar items in EconPapers)
JEL-codes: O25 O33 O38 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2022-08-01
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