The defense ministry will establish a 120 billion won fund to help encourage export firms in the defense sector.

The ministry laid out plans to create a virtuous cycle aimed at expanding defense exports during the 2022 defense export strategy meeting chaired by President Yoon Suk Yeol at Korea Aerospace Industries in South Gyeongsang Province on Thursday.

At the meeting, vice defense minister Shin Beom-chul said that increased exports will serve to strengthen the defense sector's foundation and technological edge which in turn will contribute to building cutting edge military power.

The ministry will select some 20 small and medium-sized companies each year through 2026 that have high potential in new industry areas such as semiconductors and artificial intelligence to receive comprehensive support in consulting and funding as well as research and development.

The ministry will create a 120 billion won innovation fund to financially assist venture firms in the field.

The military will also provide follow-up services to countries that have purchased Korean defense products and weapons to ensure customer satisfaction, with services ranging from joint training and technological education to the sharing of know-how on weapons operations.

The government will also raise research and development funds to over ten percent of the defense budget to preemptively secure core future technologies as the nation aims to become the world's fourth largest defense exporter accounting for five percent of the global market by the year 2027.