Seoul – The South Korean government is set to offer substantial financial aid to defense companies this year, committing around 300 billion won (approximately US$214.9 million) to help cover interest payments on loans. This initiative is part of a broader effort to bolster the nation's defense sector.
According to Yonhap News Agency, the support will be provided through a low-rate loan program that has been in place since 2007. The program enables defense companies to secure loans from designated financial institutions, with the government covering a significant portion of the interest payments. DAPA Minister Seok Jong-gun announced the plan during a Monday visit to Young Poong Electronics, a defense company located in Changwon, about 298 kilometers southeast of Seoul.
This financial support is aimed at enhancing the operational capabilities of South Korean defense companies, ensuring they can continue to contribute to the country's strategic military readiness and technological advancements in the defense sector.