The Korean Defense Industry System and Its Policy Leverages

한국 방위산업의 시스템과 정책 레버리지

The Korean defense industry was brought up in the government policy since 1970's. The important parts of defense industrial technologies have not been developed, and usually introduced from overseas. Moreover, the development of advanced technologies was not actively stimulated or pursued, consequently shaping the current structure of the defense industry which lacks global competitiveness due to the dearth of high technologies necessary for high-technology weapons. This research analyzes the systems of the Korean defense industry through a systems thinking approach in order to understand the whole mechanism and to find ways to improve the defense industry. Finding some leverages is the main purpose of systems thinking, that yields desirable results with a little effort. The three policy leverages are: (1) the policy for timely fielding; (2) the R&D investment for development and production of domestic high-technology weapons; and (3) the policy measures for exports. The research findings will contribute to the invigorating and developing the Korean defense industry by providing policy-makers and acquisition practitioners with systematic understanding and insight into the dynamics of the defense industry for them to make and execute efficient policies taking into account the Korean overall defense industry.