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Defense Industry Support

Defense Industry Support

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Summary

Intending to strengthen the global competitiveness of the defense industry, KRIT supports the development of the defense industry and the strengthening of export competitiveness by implementing projects supporting component localization, defense venturing, and weapon system remodeling and development.

Mission

  • 부품국산화 과제기획 체계혁신 및 해외시장 조사·분석
    • 핵심기술·무기체계 연구개발 및 수출과 연계한 부품국산화 조사·분석
    • 방위산업 성장 동력 제공을 위한 실효적 기술지원 강화
    • 글로벌 경쟁력 강화를 위한 수출가능성 분석
  • 실효적 성과 창출을 위한 기업육성 및 부품개발
    • 현장 중심의 방산육성 생태계 구축 및 강화
    • 국산화 부품 사용확대를 위한 부품공급망 활성화
    • 방산 소부장 개발성공률 제고를 위한 체계적 개발관리 및 기술지원
  • 해외시장 판로개척을 위한 방산수출지원 내실화
    • 해외방산 정보획득원 다변화를 통한 실효적 수출정보 제공
    • 중소기업의 글로벌 부품시장 진입지원 강화
    • 무기체계 개조개발, 글로벌 방산 강소기업 육성 등 수출 경쟁력 강화

Main activities

과제기획 체계혁신 및 해외시장 조사·분석
부품국산화 조사·분석
해외방산시장 조사·분석
실태조사,정보시스템 구축운영
방위산업발전 기술지원(방위산업 전문인력 양성사업, 이차보전사업 업무지원, 컨설팅 지원사업)
방산기업 육성 및 부품개발
부품국산화 사업
국방벤처 지원사업
국방벤처센터 운영
방산혁신클러스터 사업
방산수출지원 내실화
가격정보 수집
해외인증획득/수출컨설팅 사업관리
절충교역 지원 업무
수출지원사업개발/사업관리(방위산업 전문인력 양성사업, 이차보전사업 업무지원, 컨설팅 지원사업)
  • Innovation in the project planning system and investigation and analysis of foreign markets

① Investigation and analysis of component localization (project planning)

Identifies parts to be localized In connection with R&D and export of weapon systems with core technology and plans research projects through the establishment of development strategies and roadmaps

② Investigation and analysis of foreign markets

Investigates and analyzes information on foreign defense export markets and defense demand and, based on the outcome, researches to identify promising export items preemptively

③ Fact-finding and building and operation of information systems

Identifies parts to be localized In connection with R&D and export of weapon systems with core technology, and plans research projects through the establishment of development strategies and roadmaps thereof

④ Provision of technical support for the development of the defense industry

- Program for fostering defense industry professionals: fosters professionals to develop the defense industry and create future jobs
- Program for supporting secondary conservation: conducts preinvestigation of companies applying for financing, reviews the feasibility of support, analyzes the performance of supported companies, and supports the on-site investigation
- Program for providing consulting services: provides consulting services for Small and Medium Enterprises (SMEs) to enter the defense industry and strengthen their competitiveness

  • Fostering of defense companies and development of parts

⑤ Program for component localization

Manages projects by selecting the leading research institute, assessing research results, and standardizing to apply parts developed and produced by domestic technology and facilities to the weapon system

⑥ Program for defense venturing

Fosters the best defense venture companies by encouraging private SMEs to enter the defense market and contributing to development costs to strengthen their technology development capabilities

⑦ Operation of defense venture center

Establishes and operates national defense venture centers jointly with local governments to identify small- and medium-sized venture companies with superior civil technology and support their entry into the defense market

⑧ Defense innovation cluster project

Supports the establishment of a regional defense cooperation ecosystem by creating the environment for regional defense innovation and the R&D support and enhancing the competitiveness of SMEs and venture companies

  • Enhancement of defense export support

⑨ Collection of price information

After collecting and aggregating price information for overseas munitions from various sources, supports the calculation of target prices by providing such information to the Defense Acquisition Program Administration and related departments

⑩ Management of foreign certification/export consulting programs

Fosters small and medium-sized defense companies with international competitiveness by supporting foreign certification and providing export consulting services to promote and expand entry into foreign defense markets

⑪ Support for offset trade

Performs supportive business during the overall cycle (from the planning stage to the implementation and management stage), including proposing/reviewing negotiation plans related to the offset trade, conducting technology value assessment, providing technical support related to negotiation, and performing follow-ups

⑫ Program for supporting export development

- Program for supporting weapon system remodeling and development: supports the remodeling and development of weapon systems with the export possibility to stimulate the R&D investment of companies and strengthens the capabilities of companies to promote export
- Program for fostering small giants on the global defense field: discovers SMEs with high growth potential in the defense field and fosters them into world-class defense companies with a high share in the global defense market
- Program for supporting the performance testing of privately developed equipment for export: promotes overseas export by supporting the performance testing of weapon systems or components thereof developed by private companies for export

Overview of Defense Offset

  • Conditional trade scheme that requires any specified compensation, such as technology transfer and reverse export of components, from foreign contractors when acquiring defense articles from a foreign country
  • Governing laws

- Article 20 (Defense Offset) of the Defense Acquisition Program Act
- Article 26 (Criteria of Defense Offset) of the Enforcement Decree of the Defense Acquisition Program Act
- Guidelines to defense offset

  • General policy for Korea's defense offset

- Target: Programs comprised of unit projects having the value of $10 million among domestic and international programs
- Ratio: 50% or more among competitive programs and 10% or more among non-competitive programs

  • KRIT's main tasks related to defense offset

- Proposal and review of negotiations for defense offset
- Technology valuation for defense offset
- Supports for overseas negotiations

Details of Tasks

  • Tasks related to negotiation plan

- Negotiation plan: A document outlining the technologies domestic institutions or companies desire to acquire from overseas through a defense offset scheme in the prescribed format.

- Details

  • Identifies the details of the acquisition program and requests relevant departments of KRIT to submit a negotiation plan
  • Selects a proper negotiation plan for KRIT and submits it to the DAPA
  • Reviews the feasibility of a comprehensive negotiation plan (on the fields of parts production and logistic support) ○Valuation-related tasks
  • Valuation-related tasks

- Valuation: An assessment activity in which a valuating agency comprehensively reviews the technicality, economic efficiency, and force improvement based on the overseas companies' proposals for defense offset and describes such elements with quantitative values (such as amount, grade, score).

- Details

  • Reviews overseas companies' proposals for defense offset and analyzes their feasibility
  • Performs the technology valuation
  • Studies the valuation methodologies
  • Supports overseas negotiation
  • Responsibility as an agency for the technology valuation for defense offset

- Performs the valuation using DOV (Defense Offset Valuation model), which the agency develops on its own
- As a sole nationally accredited agency for the defense technology valuation, develops the public confidence in the result of technology valuation for defense offset

DQ (Defense Quality) mark certification

  • A scheme for improving export competitiveness by certifying the remarkable technology and quality of domestically manufactured defense articles that are modified or developed for export

Certified articles

  • Defense articles and military supplies that their domestic manufacturers desire to export
  • Includes articles modified or developed as munitions for export
  • Articles meeting specific standards such as defense standards (including KDS, MIL-STD), requirements of the purchasing country, or industrial standards

Procedure for examination