earticle

영어

Korean government has been vigorously enforcing the growth policy of her defense industry to establish global competitiveness by designating “Defense Industry as the New Economic Growth Engine,” which is one of the national undertakings, but the growth plans that support these policies do not suffice to meet the expectations especially in small & medium businesses area.
This article examines the challenges of the Korean defense industry environment and the Korean government's polices about the growth of small & medium businesses. It focuses on the immediate tasks and solution plans that are of particular importance to the small & medium businesses in defense industry. It concludes by offering six recommendations to enhance the growth of small & medium businesses. They are as follows: 1) Incentive plans to promote the mutual cooperation between large businesses and small & medium businesses which may lead to win-win situations, 2) Regulations about identifying the defense items should give preference to small & medium businesses, 3) Business restructuring is required in the defense industry, 4) Improve the process of selecting and participating of the small & medium businesses, 5) Multi-year contract system for small & medium businesses, 6) Strong support for the R&D activities of small & medium businesses.