Seoul: President Lee Jae Myung on Friday emphasized the importance of fostering innovative companies in South Korea as part of a strategy to move beyond the country's traditional focus on its defense industry. Lee highlighted that technological superiority is crucial to maintaining national security.
According to Yonhap News Agency, Lee made these remarks during a strategic meeting on fostering innovative firms held at Cheong Wa Dae. He stated, "The modern security environment has shifted into an era in which technology determines victory or defeat," underlining that the "battlefield is expanding infinitely beyond land, sea, and air" into areas like artificial intelligence (AI).
Lee further explained that the continued survival of a nation is heavily reliant on the number of innovative companies it possesses with advanced technological capabilities. He pointed out that although South Korea has transformed into one of the world's top four defense powerhouses, the country's defense industry is still largely dominated by major corporations focused on hardware, with a procurement system that remains slow and inflexible.
In response to these challenges, Lee pledged to support companies specializing in advanced technologies such as AI, drones, cybersecurity, and aerospace. He emphasized the need for South Korea to cultivate local firms capable of competing with global industry leaders, like the U.S.-based software platform company Palantir Technologies.
To achieve these goals, Lee announced that the government will aim to nurture five companies within what he termed the "new security sector," each with a corporate value of 1 trillion won (approximately US$648 million) by 2030. Additionally, the plan includes fostering 50 firms with annual sales exceeding 100 billion won.