Policy Suggestions for Revitalization of Defense R&D Agreement System

The Defense Acquisition Program Act was enacted in 2006 with the objective of enhancing the competitiveness of the defense industry. This objective was to be achieved by promoting transparency, expertise, and efficiency in the defense acquisition program, and by contributing to the advancement of a robust and capable military, as well as the development of the Korean national economic system. As a consequence of the Act, the Republic of Korea has become the fifth largest military power in the world and the ninth largest exporter of defense products in 2024. The objective is to become one of the top four defense contractors in the world. However, the necessity for the expeditious implementation of state-of-the-art science and technology in the military, based on the advancement of defense science and technology, has emerged due to the fact that the research and development of existing weapon systems has been concentrated on the methods of weapon system acquisition. This has resulted in the enactment of the Defense Science and Technology Innovation Promotion Act. However, confusion is emerging in the field of defense research and development regarding the conceptual understanding of contracts under the Defense Acquisition Program Act and agreements under the Defense Science and Technology Innovation Promotion Act. This study makes a clear distinction between the concepts of agreements and contracts, with the aim of facilitating a shift in paradigm from a defense industry that merely attempts to keep pace with technological developments to one that is at the forefront of innovation. In order to achieve this, it is necessary to conduct sophisticated and innovative research and development in line with the accelerated pace of technological advancement driven by the Fourth Industrial Revolution. In addition to this, the study puts forward policy suggestions for the revitalization of the defense R&D agreement system, with the goal of establishing a leading defense industry.