25 April 2011

RoK: Defense Industry 2020 follow-up plan unveiled

Eleven defense industry projects, including creating Korean Fighter Experimental (KFX) and Korea Attack Helicopter (KAH) programs, will be handed over to private sector from state-run Agency for Defense Development (ADD).

ADD is planning to increase the number experts to focus on developing Korean-made weapon system and give weight to creating strategic weapon system as well as fundamental core technology.

The Ministry of National Defense and Defense Acquisition Program Administration (DAPA) announced the outline of follow-up measures for 'Defense Industry 2020' plan on April 15.

The follow-up plan was first reported to the President Lee Myung-bak in the Presidential Council for Future and Vision in October last year. Since then for six months, defense experts from ministries, government agencies, defense firms and academic field work on details of the plan and reported the final measures during a meeting organized by Yim Tae-hee, Blue House chief of staff.

In particular, the Defense Ministry and DAPA prospects of earning economic benefit worth $4 billion through arms trade and create some 25,000 job positions in case follow-up plan proceed without trouble.

Under the plan, private sectors are expected to have high control over researching and developing general strategic weapon system. After reviewing 13 defense projects responsible for ADD since October last year, DAPA decided to transfer 11 projects to private sector. Among them, six projects, including making new Nuclear-biological-chemical Reconnaissance vehicles, radio sets for small units and target measuring device for Air Control jet, are going to be handed over right away. FTX and KAH programs will be transferred later.


A model fighter jet that is expected to be made
from Korean Fighter Experimental program

In addition, other projects such as developing new unmanned aerial vehicles to be used in reconnaissance operations, military satellite communication system and anti-artillery detect radar are scheduled to be transferred to private firms but ADD is considering complementary measures for technical parts that private sectors are lack of.

Basically, all defense projects related to developing general strategic weapon system are going to be controlled by private firms from 2012, according to the Defense Industry 2020 follow-up plan. The plan expects to raise the ratio of private firms involved in defense weapon system from current 60 percent to 75 percent.

In order to ease the pressure of project management after transfer, DAPA is planning to strengthen professionalism by increasing the number of experts in the management team.

The follow-up measure said that ADD is going to reinforce professionalism in basic science field by recruiting more experts up to 40 percent from current 16 percent. Also the number of experts with doctoral degree will be increased up to 60 percent from current 39 percent. In other words, projects aimed at developing strategic weapon system and basic core technology are slated to be more focused than creating general weapon system. ADD is expected to expand the ratio of its own research to 60 percent from current 13.5 percent. So far, ADD has been relying on private contractors for developing weapon system due to heavy burden on the work. The proportion of its own research of Korea Atomic Energy Research Institute, Korea Institute of Science and Technology Information and Korea Institute of Science and Technology accounts for 96, 97 and 92 percent, respectively.

A special team responsible for managing the use of new weapon system will be created within the Joint Chiefs of Staff in order to contribute in improve its capabilities and domestic industry. The team is going to be consisted of experts from defense industry and economic industry as well as specialists recommended by DAPA.

Under the follow-up plan, a military power review committee which has been operated since December last year will design mission, organization structure and management method so that the new plan could be put into practice systematically and efficiently. The committee will also first review the operation of 21 short- and medium-term defense projects, including K-2 tank, K-11 rifle, new multiple rocket launcher, Future Frigate Experimental and high-altitude unmanned aerial vehicles.

In order to foster globally competitive defense firms, DAPA and the Ministry of Knowledge Economy will beef up professionalism of defense firms by promoting investment on research and development until July this year, reforming production cost system and improving potential small and medium companies.

Moreover, the government will push for revising a law related to defense reform within this year so that it can establish mandatory plan of using private resources. By August this year, the government is planning to select sectors that can be easily privatized to take advantage of their resources and set up yearly plan.

RoK MoD