South Korea to Foster 100 Defense Startups by 2030

SEJONG, South Korea - The Ministry of SMEs and Startups and the Defense Acquisition Program Administration (DAPA) announced Monday a plan to develop 100 defense-focused startups and 30 ventures with annual revenue of at least 100 billion won by 2030.

The initiative, called the Defense Startup Promotion Plan, aims to incorporate civilian technologies — including artificial intelligence, robotics, and drones — into the country's weapon systems development process.

The plan is structured around three areas: market entry, growth support, and cooperation between startups and established defense contractors.

On the entry side, the government will introduce a Defense Startup Challenge involving the Army, Navy, and Air Force, alongside major defense firms, and will establish a contest-based procurement mechanism that allows startups to submit performance specifications and system concepts directly.

Growth support measures include technical verification, R&D assistance, and mass production backing.

The government said it will designate Creative Economy and Innovation Centers as K-Defense Startup Hubs and draw on the Next Unicorn Project Fund to attract investment.

Export support is to be provided through partnerships with international defense companies.

For 2026, the government said it will prioritize semiconductors, AI, and ship maintenance, repair, and overhaul (MRO) services, the last of which is linked to U.S.-South Korea naval cooperation.

Under the cooperation component, 15 major defense contractors will be subject to Win-Win Level Evaluations, with incentives offered to higher-performing firms.

Companies holding advanced technologies may be designated as Defense Innovation Specialized Companies, giving them access to weapon system development projects.

Recruitment for the Defense Startup Challenge is set to begin this week, according to the Ministry.