8.05-million-square-meter complex spanning Jukdong, Daedeok and Ansan to build end-to-end ecosystem from R&D and parts localization to testing, certification and mass production
Daejeon has reached a pivotal turning point in its bid to transform decades of accumulated defense research and development capabilities into industrial output, positioning the city as a hub for South Korea's defense components supply chain.
Daejeon Mayor Heo Tae-jeong announced Friday that the city had been selected as a defense-sector specialized complex under the Ministry of Trade, Industry and Energy's third round of materials, parts and equipment specialized complex designations.
The complex is set to receive more than 40 billion won ($29 million) in government funding over the next five years. It spans a total of 8.05 million square meters, encompassing the Jukdong Industrial Complex, Daedeok Techno Valley, Ansan Defense Industry Complex, the Daejeon Defense Industry Innovation Support Center in Munpyeong-dong, Daedeok-gu, and the Hanwha Aerospace campus.
The primary focus will be localizing key components for advanced guided weapons systems, which currently rely on imports for more than 90 percent of their supply. The plan calls for connecting research and development technology from the Daedeok Special Research and Development Zone to product commercialization by local small and medium-sized enterprises, and linking those efforts to the production systems of anchor companies such as Hanwha Aerospace and LIG D&A to build a stable defense supply chain.
To that end, the complex will prioritize support across five areas: technology development and localization of core defense materials and components; testing, evaluation and certification support; cooperation between demand-side and supply-side companies; technology commercialization and mass production; and entry into domestic and international defense supply chains.
The designation is the result of years of sustained effort that began when the city launched a drone-focused defense innovation cluster project during the seventh elected administration.
The city has built close cooperative networks with regional innovation institutions and defense companies, including Daejeon Technopark and the Daejeon Defense Industry Cooperative Association, and has worked to consolidate the defense R&D capabilities of the Daedeok zone with the city's corporate and industrial infrastructure to secure the complex designation.
Since the launch of the ninth elected administration, attracting a defense materials and components specialized complex has been pursued as a priority initiative, with the city conducting wide-ranging outreach in close coordination with the central government, the National Assembly, and regional industry, academic, research and military partners.
Following his inauguration in July, Mayor Heo made his first visit to the National Assembly, where he explained the need for the designation to local lawmakers and sought their support. He then formally proposed the designation to the prime minister and relevant ministries at a Chungcheong region semiconductor inter-regional cooperation forum, continuing to press for government-level backing.
In August, all seven of the region's National Assembly lawmakers joined as co-hosts of a parliamentary forum on the issue, with more than 100 participants — including city officials, related institutions and defense industry representatives — gathering to mount a unified push for the designation.
The city plans to treat the designation as the starting point for a new phase of development. Building on a cooperative framework that brings together anchor companies and local small and medium-sized enterprises, Daejeon aims to establish a defense supply chain spanning from parts localization through to mass production, and intends to accelerate work on the "Defense AX Cluster" — a campaign pledge of the ninth elected administration.
In addition, the city plans to use the designation to attract leading defense companies and stimulate investment by local firms, while supporting supply chain entry and technology commercialization to create a virtuous cycle of quality job creation and regional economic revitalization.
"This outcome is thanks to Daejeon's research institutions, universities, military and companies all running hard together with one mind," Mayor Heo said. "We will work hand in hand with the central government to ensure this project is completed successfully and to firmly secure Daejeon's future economic engine."
kwonhl@heraldcorp.com
