• Journal of the Korea Academia-Industrial cooperation Society
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• v.22 no.4
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• pp.338-344
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• 2021

Elements that threaten domestic security, such as diplomatic changes in the four major powers surrounding the Korean Peninsula and restrictions on supply and demand of parts due to COVID-19, are constantly increasing. The importance of localizing weapon systems has grown to respond proactively to the threat. As localization is not conducted evenly by the field, it is necessary to change the criteria for selecting localization targets. Establishing standards for selecting targets is difficult due to a lack of research to identify targets. This paper emphasized that the smooth supply of parts from overseas should be examined to identify targets for localization. If suppliers are not distributed evenly in the market, there is a risk of potential supply problems. CRk and HHI, representing the market structure, were proposed as indicators for evaluating the degree of smoothness quantitatively. Among them, CRk is used in Korea to check the market concentration, but there is a limit in the subjectivity of the evaluator, so it cannot be applied without a separate study on the market structure. Therefore, HHI should be applied.