The South Korean government has announced a plan to foster 100 defense startups by 2030, including a target of cultivating 30 high-growth ventures with annual revenues exceeding KRW 100 billion. The Ministry of SMEs and Startups (MSS) and the Defense Acquisition Program Administration (DAPA) unveiled the initiative following a presidential strategy meeting on January 30, with six agencies forming a formal coordination framework to implement it.
In the United States and Europe, companies such as Shield AI, Anduril, and Palantir have demonstrated how civilian-developed AI, autonomy, and data platforms can be rapidly adapted for military use. Korean firms including Nearthlab, Pablo Air, and GenGen AI are pursuing similar dual-use technologies in drones, autonomous navigation, and synthetic data, but smaller companies have long struggled with complex procurement procedures, limited data access, and high compliance requirements. The new measures are designed to lower these barriers. A “Defense Startup Challenge” will connect startups with the Army, Navy, Air Force, and major defense contractors, with selected technologies advancing to field demonstrations.
A proposal-based acquisition track will also be introduced in areas such as drones, robotics, and AI, allowing suppliers to submit performance concepts rather than respond to predefined specifications. Access to military data critical for AI development will be expanded through designated “Defense AX Hubs.” To support scale-up, the government will strengthen technology transfers from national defense research institutes and designate a regional center as a “K-Defense Startup Hub.” Investment funds and the GVC30 initiative will connect firms with global defense supply chains and overseas buyers. Partnership evaluation mechanisms and a “Defense Innovation Specialist” designation will be introduced to promote fairer collaboration between large contractors and smaller suppliers.
