"Until now the defense industry has developed with defense at its center, but from here on the industrial side will also be emphasized, which is why the post of standing vice chairman was opened to the private sector. During my term I will devote all my strength to making national security and the defense industry develop as two pillars in a mutually reinforcing cycle."
Lee Nam-woo, a former vice minister of the Ministry of Patriots and Veterans Affairs and the first person from the private sector to hold the post of standing vice chairman at the Korea Defense Industry Association (KDIA) in roughly 50 years since its founding, said this in an interview with The Seoul Economic Daily on the 19th when asked about the resolve with which he takes office.
Lee graduated from Seoul National University's law school and entered public service through the 35th civil service examination. He later held major posts at the Ministry of National Defense and the Ministry of Patriots and Veterans Affairs, building expertise spanning defense policy, defense acquisition and veterans administration as a specialist in defense and the defense industry.
Asked about his top priority as standing vice chairman, Lee said he would "transform the association into the premier policy research institution for the defense industry." Because the association is the only body able to speak for the industry as a whole, he aims to strengthen its policy research organization.
Lee stressed that the need for a change in the association's role has grown. "Beyond representing the interests of member companies, it must take on a role in building a sustainable growth ecosystem for Korea's defense industry," he said. "At the end of the year we also plan to hold a ceremony to declare a vision that prepares for the next 10 years."
"Now that the standing of the defense industry has been elevated to that of a national strategic industry, the association's role and contribution have grown to match," he added. "I will reshape the association into an organization that first considers and proposes where the defense industry should go."
To that end, Lee said he would expand the association's joint research with outside research institutions. "Through joint research with a range of outside expert groups, we will strengthen the policy and research capabilities of our own staff and foster an organizational culture that leads the growth of Korea's defense industry," he said.
He said he would place particular emphasis on the association's role as a "facilitator of regulatory reform" connecting industry sites with government policy. He intends to reflect member companies' difficulties and their calls for institutional improvement in policy to support innovation and growth, and to make every effort to improve unreasonable rules that hold back the industry's development.
He also plans to focus the association's capabilities on building an ecosystem in which prime contractors and their suppliers, and large companies and small and mid-sized firms, grow together, in close consultation with the Defense Acquisition Program Administration. The idea is to raise the competitiveness of the defense industry as a whole by expanding capacity and strengthening the growth base of promising small and venture businesses.
The association is also pursuing a "One-Team" arrangement with related organizations such as the Korea Trade-Investment Promotion Agency and the Korea Trade Insurance Corporation to play an active role in supporting exports by small and mid-sized defense firms. Rather than piecemeal help such as participation in overseas exhibitions, it plans to sharply expand packaged long-term export support programs covering financing, legal affairs and marketing.
Lee also said improvements are under review regarding the burden of membership fees. "In the fee structure, the share tied to revenue is excessive, while the base fee is too low because it has not reflected inflation at all," he said. "A study is under way, and once we see the results we will reorganize the structure on a reasonable basis."
Lee mentioned the possibility of reviewing a reintegration with the Defense Industry Mutual Aid Association. "If it can further strengthen financial support and guarantee services for member companies, it is well worth considering over the long term," he said. "But if a broad consensus is not formed, I will not push reintegration through."
He also laid out a vision for K-DEX, the integrated ground forces defense exhibition the association will host in December. "Beyond growing it into Asia's premier ground forces defense exhibition, I will expand the brand into a 'K-Defense Expo' that also covers the maritime and aerospace sectors," Lee said.
"It can become not a mere exhibition but a 'strategic platform' that shows the world the technological capability and vision of Korea's defense industry," he said. "This year we will hold the exhibition successfully without fail, make up for any shortcomings and expand it into the exhibition that represents Asia in ground defense."
Finally, Lee cited three requirements for Korea's defense industry to maintain its competitiveness and achieve sustainable growth at a time when Europe is rearming again: securing technological sovereignty, building an ecosystem of shared growth, and attracting top talent.
"Beyond localizing core components and materials, the key is whether we can secure the technologies that will lead future battlefields, such as artificial intelligence and unmanned systems, and for that a healthy ecosystem, a system for training specialized personnel and measures to draw top talent into the industry are essential," he said.
Founded in 1976, the association is Korea's leading defense industry body, contributing to the development of the country's defense industry by strengthening competitiveness, promoting exports and supporting policy research and institutional improvement. It has 799 member companies, including 83 full members and 716 associate members.
