S. Korea to invest 50 bln won in 32 firms to boost defense industry

SEOUL, July 28 (Yonhap) -- Thirty-two defense firms have been selected to receive a total of 50.7 billion won (US$42.4 million) in government funding for localization of key parts for weapons systems and other purposes, the arms procurement agency said Tuesday.

Of them, 11 small- and medium-sized companies will receive 30 billion won over the next five years to develop homegrown parts, while another eight firms will receive 14.1 billion won over the next three years to tap into overseas markets, according to the Defense Acquisition Program Administration.

The other 6.5 billion won has been allocated for 13 small- and medium-sized companies who seek to enter the defense industry amid growing economic fallout from the new coronavirus, it said.

"We will continue to expand our budget to support local small- and mid-sized venture firms to stably grow despite economic difficulties," the agency said in a release.

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