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In this paper, a policy recommendation based on the R&D planning methodology for the future combat systems (FCS) is presented. The interest in FCS for preparing for the future wars has been growing of late. The United States defines FCS as a network-centric warfare (NCW) method and believes that defense unmanned robots should be responsible for combat, combat support, intelligence, etc., as a key role player in FCS. The Republic of Korea (ROK) Army has also been attempting to define the concept of FCS for the ROK Army, with ROK Army Vision 2010. In particular, the ROK Army has been conducting researches about defense unmanned ground robots for FCS in the ROK Army. The ROK Army, however, has many challenges in achieving FCS, such as the country’s limited defense budget, as with the U.S. As a result, there is a need to define the original concept of FCS for the ROK Army considering South Korea’s defense budget. There is also a need to consider the kinds of defense unmanned ground robots that are required for FCS. Presented in this paper are the megatrend and top brands of defense unmanned ground robots for FCS, and a policy recommendation based on the R&D planning methodology for the ROK Army FCS.

This study deals with how company A, a defense company, improves the process to build a configuration management system, and suggests the processes of demand, diagnosis, analysis, redesign, and execution for process improvement, and also the quantitative and qualitative results of the process improvement. The study intends to enhance the importance of configuration management as a countermeasure needed when the components are discontinued according to the weapon system’s life expansion in the defense industry. Through the case study with company A on the process improvement of the configuration management system, this study analyzes the promotional processes and results and then gives suggestions so that an even more useful configuration management system can be built. It is meant to encourage other companies to benchmark with company A. This process improvement of company A’s configuration management system will be the model for the building of the configuration management system in the defense industry.

SRAAM (short-range air-to-air missile) plays an important role in a fighter’s performance in air combat, and SRAAM performance is being improved through missile component improvement, such as the seeker, propulsion, guidance, and thrust vector systems. The domestic SRAAM development capability is being matured by the technology obtained from anti-air and anti-ground missile development and KTX-1/T-50 aircraft development. This paper analyzes the technical characteristics and performance of the SRAAM system and missile component, and presents a domestic air-to-air missile development strategy based on a foreign country’s air-to-air missile development history, the domestic guided-missile development capability, and T&E facility analysis. The parallel development of the domestic SRAAM with KF-X will bring forth efficient results in terms of the development time and cost. Thus, this paper analyzes the domestic SRAAM development technology with regard to the avionic arming system and the air-to-air missile, testing infrastructure, and parallel development plan with the KF-X project.

In general, there is a difference between the contract costs and the adjustment stage, and there is a relationship between the adjustment cost and the contract period. In this study, it was found that there is no difference between the contract costs and the adjustment stage within a specific range in terms of the contract period. Therefore, the sample data were divided into three groups based on the contract period, and the difference was determined for each group. It was found from the study results that one group can enter into a firm contract because of the minimal difference between the contract costs and the adjustment stage. An alternative way of entering into a firm contract is thus suggested, using the contract period for the research and development process in the military.

The GCC member countries are very rich but have a relatively small number of people and soldiers. As such, they hire numerous foreign workers (the number of foreign workers of some GCC countries exceeds their population). They also want to hire some mercenary troops. If South Korea establishes a mercenary company for the six GCC member countries, it will be a win-win deal for both South Korea and the GCC countries. The mercenary troops will be provided by the South Korean mercenary company, and the weapons systems, equipment, and facilities for such company will be provided by the South Korean defense industry. The total expenses will include those for the personnel, weapons, equipment, and facilities, and the operational expenses of the company will be checked by the GCC member countries. Each GCC member country will maintain one fighter wing and two armored brigades but will be able to obtain additional assistance from five fighter wings and ten armored brigades at critical times. The South Korean mercenary company will be a security insurance company for the GCC member countries. It will enable the South Korean defense industry to earn money, and will generate tens of thousands of jobs for the young male South Koreans. It can form part of the creative economy.

The issue of liquidated damages for delay is one of the most important issues in the defense materials business, both for the government and the companies. With the increasing number of claims or court cases related to liquidated damages for delay, the companies providing defense materials to the government may need to make it a high priority to become well versed in the related court decisions. Meanwhile, the courts, when judging this matter, seem to be reluctant to accept the argued excusable causes, especially those originating from the delay on the part of the suppliers, and to discharge companies from the responsibility of providing liquidated damages for delay. The defense industry, however, has three outstanding characteristics that totally separate it from other industries. First, in many cases, it is virtually impossible for the domestic companies to deliver materials to the government on time when a foreign company exclusively supplies many of the main components. Second, the domestic companies should make purchase orders from their foreign suppliers in advance so that they could deliver the ordered materials to the government on time, even before the contract between the company and the government is entered into. Third, the South Korean government has agreed, through its official interpretations, to discharge liquidated damages occurring due to the DPAS under certain conditions. These three characteristics may lead to the conclusion that in some cases, the domestic companies do not have any way of preventing delayed delivery and as such, in those cases, the delayed delivery cannot be attributed to them. Even the government agrees to this conclusion. Therefore, if the aforementioned three characteristics of the defense industry will be taken into account, the courts may become more willing to discharge companies from their responsibility of providing liquidated damages for delay in the cases described above.

This study is to look at how the EU and each government has pursued some of the policies and institutions to develop their regional defense industries from 1990s to the present, and to draw policy implications that help Korean government to enhance competitiveness of the domestic defense industry. Research findings show that defense-related agencies, such as OCCAR and EDA, didn’t have authoritative means that coordinate and control the defense industrial policies of each European country. These agencies have played a role in coordinating collaborative program that would be focus on the defense-related Research and Technology(R&T) among European countries. In this respect, in Europe, each government’s defense-related departments, armed forces & defense industries have the authority to perform a key role in the process of the formulation and implementation of defense industrial policies. Each government and defense industry of the Europe has three strategies or policies in common to counter the dominance of the U.S. defense companies in global markets. First, it strengthens defense cooperation among European countries. Second, it fits into the global supply-chain dominated by the U.S. defense industry. Third, it seeks to become part of the U.S. defense industry. With these in mind, Korea's defense industry must actively promote collaboration - common development & production - among domestic & foreign defense industries. And it needs to participate in the U.S. procurement market by taking over the U.S.'s small and medium-sized defense companies like the European defense industries. In addition, it needs to promote strategies to secure overseas production base through joint development & production, joint venture through technology transfer, etc., in the case of the Middle East and Asian countries that have a lot of demand of conventional weapons systems.

The purpose of this study was to explore the current status of and problems faced by South Korea’s defense industry, and to suggest desirable plans for establishing sustainable governance for the improvement of the competitive power of such industry. The national defense industry agenda aims to transform the defense industry into “a new creative economic player” to contribute to the national economic growth. Governance has become a new method of administration to form a new order and to create changes in politics, the economy, the defense industry, and the society through coordination, control, and regulation. South Korea’s defense industry maintains the structure of system integrators focused on developing platforms for the armed forces, components and parts suppliers, system-centered R&D, and founding structure. Consequently, South Korea’s defense industry lacks the capabilities needed for the development of a core technology. Establishing governance for R&D and structural reformation is a requisite measure for strengthening the international competitiveness of South Korea’s defense industry.

National defense science and technology based on civil-military integration is the primary field leading to the realization of the creative economy being promoted by the South Korean government. Defense industries are to have technological experts, long-term development and research, large-scale budget projection, consistent creation of effective demands, law enactment, and institutional policy development for the attainment of the national objectives. Thus, the strengthening of the industrial competitiveness through the selection and concentration strategy is essential and is the foremost national task. In a nutshell, this inquiry suggests the future policy direction for the promotion of the national defense industries, illustrating the present problems and the controversial issues with regard to the ecological environment of the military-industrial complex. First, it searches for the policy foundations of the national strategies and the promotion of the defense industries, and then reviews the primary tasks that need to be done in the context of the defense economies as a whole. This paper contains the following policy alternatives: promotion of the domestic market, revitalization of exports, strengthening of efficiency and management, intensive defense research and development, and provision of consistent institutional and legal assistance.

This study is related to South Korea’s experimental fighter aircraft selection driving strategy. Careful consideration should be given to the issues of the driving strategy due to the continuous cost-cutting initiatives with regard to the defense budget, a global trend that induced a worldwide economic downturn. Therefore, the efficient and effective aspects have to be considered when purchasing an experimental fighter aircraft. Moreover, an attempt must be made to link this to the advancement of the aerospace industry based on the understanding that the ROC (required operational capability) will be fulfilled preferentially, because the advancement of the aerospace industry will produce a very extensive ripple effect on the related benefits, such as job creation, propagation of advanced technologies, and national economic improvement. Thus, it should be ensured that some benefits will be obtained in return through the experimental fighter aircraft selection, such as the required technology transfer, parts production, manufacture, and KFX (Korean Fighter eXperimental)’s connection. In this paper, some foreign countries’ purchase contracts are studied to draw implications and to compare these with South Korea’s contracts. Electing a driving strategy for national defense reinforcement and for the advancement of South Korea’s aerospace industry is an urgent task, and there is thus a need to reflect diverse relevant perspectives.