“The Republic of Korea – these words are always held close to the heart.”

On the 27th, at L3 Building of LIG Defense & Aerospace Co., Ltd. (LIG D&A) Gumi House in the Gumi National Industrial Complex in North Gyeongsang Province. Above the blue phrase hanging on the front, the national flag of Korea fluttered. Identity verification was required to enter the site. Mobile phone and camera use was not permitted, and the interior could not be viewed without an employee escort. The stringent security control evoked a military facility.

Park Bae-ho, Head of Production (Executive Vice President) at LIG D&A, said, “All of our executives and employees have been continuing a ‘patriotic New Year kick-off ceremony’ for more than 20 years, visiting Yeongcheon National Cemetery on the first working day of the new year since 2004,” adding, “We work with a firm commitment in our hearts to remember the sacrifices of those who devoted themselves to the country and to develop technologies that protect the safety of the people.”

What is produced under this strict security is precision-guided weaponry that supports air defense networks not only in Korea but around the world. At Gumi House, seekers, guidance and control units, warheads, and propulsion systems are combined to complete the weapons. Even after assembly, the weapons undergo tests to check the connection and operational status of components. The pledge of “The Republic of Korea” displayed on the building is embodied in the weapons through precise assembly and verification.

● Gumi, an emerging global defense industry city

Gumi City, which grew on the back of the electronics industry, is broadening its industrial landscape into a “K-defense city” that encompasses precision-guided weapons, unmanned systems, and aerospace. The city plans to turn large corporations’ export and production facility investments into a new growth engine by linking them with technology development, testing and verification, and talent cultivation at small and medium-sized enterprises.

The starting point of LIG D&A, the core axis of Gumi’s defense industry, was maintenance of foreign-made missiles. Launched in 1976 as Geumseong Precision Industry Co., Ltd., the company built its technological capabilities through depot-level maintenance by disassembling, inspecting, and repairing US-made “Hawk” and “Nike Hercules” missiles. Its experience integrating fire control equipment, radar, and launchers into a single weapon system laid the groundwork for independent development of domestic guided weapons.

A representative achievement is Cheongung-II, the “missile that intercepts missiles.” It is a medium-range, medium- to high-altitude surface-to-air interception system that responds to ballistic missile and aircraft attacks; development began in 2012 under the leadership of the Agency for Defense Development and mass production started in 2018. As guided missiles, radar, and engagement control systems must operate organically, the system concentrates the technological capabilities of multiple defense contractors.

Export performance is also notable. The Cheongung-II supply contracts concluded with the United Arab Emirates (UAE), Saudi Arabia, and Iraq between 2022 and 2024 total around KRW 12 trillion. The company plans to expand its business into exports of integrated air defense networks capable of responding to threats at multiple altitudes by adding systems such as the long-range, high-altitude interception system “L-SAM” to Cheongung-II.

In March this year, marking the 50th anniversary of its founding, the company changed its corporate name from LIG Nex1 Co., Ltd. to its current name through a regular general shareholders’ meeting. By combining “Defense,” representing the defense industry, and “Aerospace,” representing the aerospace field, the new name reflects the direction of its future business.

The company is also expanding its business areas to space and unmanned systems. Based on satellite research and development that began in 2006, it is participating in projects such as the Cheollian 5 satellite and the Korean Positioning System. It is also developing the “Haegum-X” unmanned surface vessel, which can be fitted with different equipment depending on the mission, and the “G-Sword” unmanned vehicle, capable of autonomous driving and remote operation. Research is also underway to apply artificial intelligence (AI) to air defense networks and unmanned systems.

The company is pushing to expand its production base as well. North Gyeongsang Province, Gumi City, and LIG D&A signed an investment memorandum of understanding worth KRW 370 billion in February this year. By 2029, they plan to establish a defense-dedicated production base in the Gumi National Industrial Complex and newly hire 200 employees. The base will connect component assembly, performance testing, system integration testing, final assembly, and quality inspection to respond to export expansion.

A cooperation network with local companies has also been established. About 140 related companies participate in the Gumi Defense Industry Enterprise Council. LIG D&A and Hanwha Systems Co., Ltd. serve together as chair companies. This provides a foundation for linking Gumi’s accumulated electronics and manufacturing technologies and precision machining capabilities to the defense supply chain.

● Fostering local companies through the Defense Industry Innovation Cluster

Gumi City is promoting the Defense Industry Innovation Cluster project to ensure that the growth of large corporations spreads to local small and venture companies. Selected for the project in 2023, the city will invest KRW 49.9 billion, including KRW 24.5 billion in national funding, by next year. The core facility, the Advanced Defense Industry Promotion Center, is scheduled to open next month. The 3,960 m² facility will be equipped with environmental, reliability, and electromagnetic compatibility (EMC) testing equipment.

In August last year, the city completed infrastructure for testing and demonstration of unmanned surface vessels. Through a defense-specialized development research institute involving universities and companies, the city also connects research and development with talent cultivation. In addition, it supports small-scale demonstration systems and prototype development, defense technology transfer, and start-ups.

The Gyeongbuk Defense Venture Center assists 82 partner companies in identifying defense projects and developing markets. The Gumi Defense Venture Center, which had been operated with KRW 500 million in municipal funding, was expanded and reorganized this year into the Gyeongbuk Defense Venture Center, increasing its support scale to around KRW 1.4 billion, including national and provincial funding.

Efforts to cultivate talent are also accelerating. This year, Gumi launched specialized defense industry training for incumbent workers, and Kumoh National Institute of Technology, the Korea Institute for Advancement of Technology, and the Defense Technology Promotion Research Institute are promoting a defense AI talent boot camp and a practical workforce training program linked to local small and medium-sized enterprises.

Yoon Jae-ho, Chair of the Gyeongbuk Chamber of Commerce Council (Chair of the Gumi Chamber of Commerce), said, “Gumi’s defense infrastructure is of world-class standard,” adding, “It is time for public-private cooperation and government support to be further expanded so that companies can compete on the global stage.”

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