Korea Expands SME R&D Into Defense and Rare Earth Supply

South Korea is intensifying its innovation policy by funneling resources into 140 small and medium enterprises (SMEs) that focus on developing key materials, parts, and equipment technologies. This initiative extends into critical areas like defense systems and rare earth materials, connecting supply chain security with regional industrial policy and SME innovation. Such a comprehensive approach underscores a strategic commitment from the government to bolster domestic technological capabilities in these vital sectors.

The implications of this expansion are significant, as it not only fosters the growth of local SMEs but also enhances South Korea's autonomy in critical technology areas. By nurturing domestic production capabilities in defense and rare earth materials, the country aims to mitigate foreign dependence, particularly in strategic materials and defense systems, thereby strengthening its national security and industrial resilience on the global stage.