Palantir Technologies is a leading example of an innovative company, gaining global attention for its AI-based battlefield information analysis platform that integrates and manages battlefield data.
As modern warfare shifts towards an 'AI-driven combined combat system' involving both manned and unmanned technologies, civil-military technological cooperation is becoming increasingly important. In response, the South Korean government is actively promoting the development of new security innovation companies through public-private partnerships.
According to government sources on September 8, the Ministry of SMEs and Startups, the Ministry of Economy and Finance, the Ministry of National Defense, and the Defense Acquisition Program Administration have formed a 'Working Group for Supporting New Security Innovation Companies' to discuss the identification and support of these firms.
The government aims to nurture five companies with a valuation of over 1 trillion won and 50 companies with sales exceeding 100 billion won by 2030.
A key priority for fostering new security innovation companies is the introduction of a 'rapid procurement system.' This system is essential for quickly connecting contracts and purchases to the products and technologies of innovation companies related to new security.
During a strategy meeting on fostering future new security innovation companies held at the Blue House in June, it was decided to amend the 'National Contract Act' and establish the 'Defense Advanced Power Business Act' to facilitate the swift introduction of products and technologies from these companies. Additionally, a special law to support the discovery and nurturing of new security innovation companies will be enacted.
The Ministry of Economy and Finance plans to establish a rapid procurement system that allows for simultaneous research and development agreements and purchase contracts, enabling the swift introduction of advanced private technologies into public institutions and the military.
On August 31, 16 lawmakers, including Kim Byeong-joo of the Democratic Party and Yoo Yong-won of the People Power Party, proposed the 'Defense Advanced Power Business Act.' This act is positively viewed for its provision of a separate procurement system aimed at quickly introducing rapidly changing advanced technologies such as AI, drones, robots, and software into the military, thereby alleviating the rigidity of the existing procurement system.
The proposed legislation includes a specialized procurement system and procedures for advanced power systems, emphasizing the priority deployment of 'minimum functional products' that meet core mission requirements, iterative performance improvements, and rapid purchases through certification lists.
The U.S. Defense Innovation Unit (DIU) utilizes a flexible prototype contracting method called Commercial Solutions Opening (CSO) to continuously connect military challenges with commercial technologies, with prototype contracts being finalized in as little as 60 to 90 days.
Jang Won-jun, a professor at Jeonbuk National University specializing in advanced defense industries, stated, "To create a 'Korean-style DIU,' we need to establish a so-called 'Defense Advanced Power 365 Platform' that allows startups, small and medium-sized enterprises, and large corporations to propose technologies and products, while the military can continuously express its needs throughout the year." He emphasized that minimum functional products should be deployed within 1 to 2 years, and contracts should be finalized within 90 days after selecting a contractor, barring special circumstances such as security and safety verifications.
Professor Jang also noted, "Rapid procurement fundamentally involves trying quickly, validating in real environments, and if failures occur, stopping early to pivot to alternatives. While strict penalties should be imposed for fraud, misappropriation, or misuse of project funds, bona fide technical failures that occur during normal technology development processes should generally be exempt from participation restrictions or project fund recovery."
As modern warfare shifts towards an 'AI-driven combined combat system' involving both manned and unmanned technologies, civil-military technological cooperation is becoming increasingly important. In response, the South Korean government is actively promoting the development of new security innovation companies through public-private partnerships.
According to government sources on September 8, the Ministry of SMEs and Startups, the Ministry of Economy and Finance, the Ministry of National Defense, and the Defense Acquisition Program Administration have formed a 'Working Group for Supporting New Security Innovation Companies' to discuss the identification and support of these firms.
The government aims to nurture five companies with a valuation of over 1 trillion won and 50 companies with sales exceeding 100 billion won by 2030.
A key priority for fostering new security innovation companies is the introduction of a 'rapid procurement system.' This system is essential for quickly connecting contracts and purchases to the products and technologies of innovation companies related to new security.
During a strategy meeting on fostering future new security innovation companies held at the Blue House in June, it was decided to amend the 'National Contract Act' and establish the 'Defense Advanced Power Business Act' to facilitate the swift introduction of products and technologies from these companies. Additionally, a special law to support the discovery and nurturing of new security innovation companies will be enacted.
The Ministry of Economy and Finance plans to establish a rapid procurement system that allows for simultaneous research and development agreements and purchase contracts, enabling the swift introduction of advanced private technologies into public institutions and the military.
On August 31, 16 lawmakers, including Kim Byeong-joo of the Democratic Party and Yoo Yong-won of the People Power Party, proposed the 'Defense Advanced Power Business Act.' This act is positively viewed for its provision of a separate procurement system aimed at quickly introducing rapidly changing advanced technologies such as AI, drones, robots, and software into the military, thereby alleviating the rigidity of the existing procurement system.
The proposed legislation includes a specialized procurement system and procedures for advanced power systems, emphasizing the priority deployment of 'minimum functional products' that meet core mission requirements, iterative performance improvements, and rapid purchases through certification lists.
The U.S. Defense Innovation Unit (DIU) utilizes a flexible prototype contracting method called Commercial Solutions Opening (CSO) to continuously connect military challenges with commercial technologies, with prototype contracts being finalized in as little as 60 to 90 days.
Jang Won-jun, a professor at Jeonbuk National University specializing in advanced defense industries, stated, "To create a 'Korean-style DIU,' we need to establish a so-called 'Defense Advanced Power 365 Platform' that allows startups, small and medium-sized enterprises, and large corporations to propose technologies and products, while the military can continuously express its needs throughout the year." He emphasized that minimum functional products should be deployed within 1 to 2 years, and contracts should be finalized within 90 days after selecting a contractor, barring special circumstances such as security and safety verifications.
Professor Jang also noted, "Rapid procurement fundamentally involves trying quickly, validating in real environments, and if failures occur, stopping early to pivot to alternatives. While strict penalties should be imposed for fraud, misappropriation, or misuse of project funds, bona fide technical failures that occur during normal technology development processes should generally be exempt from participation restrictions or project fund recovery."
* This article has been translated by AI.
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