The government and the ruling People Power Party on Monday agreed to put over 3 trillion won ($2.06 billion) into 10 local defense technology export areas, including artificial intelligence, aerospace and high-end materials for the next two years.
The announcement comes as officials eye a rebound for the country’s arms exports, which remained sluggish throughout last year despite the country’s goal to become the world’s fourth-largest arms exporter by 2027.
The 10 tech fields tied to defense would receive over 3 trillion won by 2027, according to Rep. Kim Sang-hoon, the ruling party’s top policymaker.
Small and medium-sized arms manufacturers, recognized by the government as innovative and promising, will each receive up to 5 billion won for the next two years. State-run lenders including the Export-Import Bank of Korea and the Korea Trade Insurance Corporation will provide financial supports for the manufacturers as well.
The government said it plans to grant arms manufacturers the ability to utilize a special overtime work permit system which will allow companies to ask employees to work up to 64 hours a week, for up to 180 days per year, upon approval by the Ministry of Employment and Labor.
Under Korea's Labor Standards Act, the maximum workweek for full-time employees is 40 hours, with the possibility of an additional 12 hours of overtime per week only.
mkjung@heraldcorp.com
