Defense

"Korea's Defense Industry Is Irreplaceable" Declaration… Major Transformation of the Defense Sector Through a "Three-Pronged Approach" of Nuclear Submarines, AI, and Exports

Defense Acquisition Program Administration Presents Work Report to the President Plan for Nuclear-Powered Submarine Project to Be Finalized by Year-End Establishing a Rapid Acquisition System for AI and Drones Expansion of K-Defense Startups and Export Funds

kim kwanyong
2026-08-05 12:13:16
[Edaily Reporter kim kwanyong ] The Defense Acquisition Program Administration (DAPA) has unveiled a strategy to foster “Irreplaceable K-Defense,” centered on advancing the nuclear-powered submarine program, securing AI-based advanced military capabilities, and expanding defense exports. The plan aims to expand DAPA’s role beyond that of a traditional weapons procurement agency to become a platform that leads cutting-edge defense technology and the global defense industry ecosystem.

On the 5th, during a joint work briefing at the Ministry of National Defense presided over by the President, DAPA announced its key policy tasks for the second half of this year under the theme “National Peace, National Pride: An Irreplaceable Republic of Korea.”

In this briefing, DAPA presented five key initiatives: △ securing core capabilities for self-reliant national defense; △ innovating the system for acquiring advanced capabilities; △ fostering innovative companies for future security; △ building a mutually beneficial defense industry ecosystem; and △ strengthening international cooperation and export support.

The most notable aspect is the push for a nuclear-powered submarine program. DAPA announced that it will utilize the organizational and technical capabilities accumulated during the development of the Korean-built submarine to formulate a project plan for a nuclear-powered submarine by the end of this year. In addition, the agency plans to accelerate the acquisition of unmanned systems and anti-drone systems, and to ensure the timely operational deployment of core capabilities for the Korean “Three-Pillar System,” such as the KF-21 fighter jet and the long-range artillery interception system.

President Lee Jae-myung delivers remarks at the 1st Future Defense Strategy Committee meeting held on May 26 at the Navy Submarine Command in Jinhae-gu, Changwon, South Gyeongsang Province. (Photo: Yonhap News)

Efforts to secure cutting-edge defense technologies will also be accelerated. The plan is to drive the full-scale transition to AI in the defense industry by promoting the development of AI semiconductors, physical AI-based drones and robots, and aircraft engines for next-generation fighter jets, thereby establishing a foundation for a strong military capable of responding to future battlefield environments.

Regarding the procurement system, the Defense Acquisition Program Administration (DAPA) is pushing for the enactment of the “Act on Defense Advanced Capabilities Projects” to expedite the introduction of advanced weapon systems. It has decided to expand rapid pilot projects to enable the faster adoption of rapidly evolving technologies—such as AI and unmanned systems—compared to existing procurement procedures.

Beyond the defense sector, public procurement functions across the entire government will also be strengthened. Through a government-wide consultative body, orders for public vessels will be systematically managed, and integrated procurement of naval and coast guard vessels will be pursued. Additionally, the agency plans to expand the application of defense R&D achievements to civilian sectors, such as wildfire suppression and disaster rescue.

The defense industry ecosystem will also be expanded from a focus on large corporations to one centered on innovative companies. The Defense Acquisition Program Administration (DAPA) will identify promising companies through the “K-Defense Startup Support Program” and stimulate the influx of young talent and startup activity through the “Defense Youth New Deal” policy.

Furthermore, the agency will support small and medium-sized enterprises (SMEs) and venture companies in entering overseas markets by expanding direct investment through the K-Defense Export Fund, as well as through initiatives such as the Global Value Chain Entry Support Program (GVC30) and export route support programs. In addition, the plan is to establish a virtuous cycle where technology development translates into actual sales by expanding government procurement of SME products and mandating their application in weapons systems.

Stability in the defense supply chain and technology protection will also be strengthened. The Defense Acquisition Program Administration (DAPA) will introduce a defense-specific “win-win evaluation” system for the first time to provide incentives—such as offset trade and secondary compensation—to outstanding companies, and will fully implement a parts localization project jointly funded by the government and system manufacturers.

Furthermore, the agency plans to establish a weapons systems supply chain database (DB) and an early warning system, as well as develop anti-tampering technology to prevent the leakage of advanced technologies and mandate its application in exported weapons systems.

Export strategies will also be reorganized to be tailored to specific regions. In the United States, the agency will expand its entry into the naval vessel construction market and cooperation in naval vessel maintenance, repair, and overhaul (MRO), while pursuing participation in the European defense supply chain and intensifying efforts to penetrate the Southeast Asian and South American markets. It also plans to expand the operation of integrated Korean pavilions at overseas defense exhibitions and projects to modify and develop weapon systems for export.

Lee Yong-chul, Commissioner of the Defense Acquisition Program Administration, emphasized, “We will shift the paradigm of the advanced military capability acquisition system and create a defense ecosystem centered on mutual growth and safety to leap forward as an irreplaceable ‘K-defense’ industry,” adding, “We will make this year the first year of transforming the structure of South Korea’s defense industry into a future-oriented one.”

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