Ministry of SMEs and Startups seeks defense-tech startups for up to W100m in support

The Ministry of SMEs and Startups announced Wednesday it is recruiting companies to participate in an open-innovation program involving the military and defense firms.

Applications open Thursday and run through Aug. 4. The program — "Everyone's Challenge — Defense," a public-private open-innovation initiative — supports collaboration by having startups tackle technology challenges posed by military and defense-sector client companies.

This year, the ministry significantly expanded the program's scale using supplementary budget funds. Following the selection of 10 companies in the first recruitment round in March, it will now add approximately 50 more startups. Selected companies will receive collaboration funding of up to 100 million won ($66,400) per project, usable for technology verification (proof of concept) and prototype development.

Top-performing companies will also be connected to follow-on research and development support. Through the Startup Growth Technology Development program, they can receive up to 200 million won over a maximum of 18 months. The Public-Private Joint Technology Commercialization program offers up to 600 million won over a maximum of two years. Eligibility, however, depends on each program's application requirements and evaluation results.

The selection process begins with a document screening, after which qualifying startups participate in one-on-one meetups with military units and client companies to develop concrete collaboration plans. Final participants are then chosen through a presentation evaluation. Selected companies will carry out collaborative projects involving technology verification and prototype development.

The ministry cited the rapid growth of the global defense market as another driver behind the program. According to the Stockholm International Peace Research Institute, global military spending in 2024 rose 9.4 percent from the previous year to $2.72 trillion — the highest level since records began. Ongoing geopolitical tensions and expanding security needs are fueling demand for new technologies in the defense sector.

South Korea's defense industry has been rapidly broadening its use of advanced civilian technologies, including AI, unmanned systems, robots, drones, satellites and cybersecurity. As a result, even the traditionally large-company-dominated defense ecosystem is increasingly recognizing the need to collaborate with startups that hold innovative technologies.

Through this program, the ministry plans to build a growth platform that allows technology-capable startups to validate their innovations within military and defense industry testing environments, and ultimately pursue commercialization in the defense sector and expansion into overseas markets.

"The defense sector demands high reliability and rigorous technology verification, so for startups looking to enter the market, hands-on validation opportunities and experience collaborating with client organizations are paramount," said Jo Gyeong-won, the ministry's director general for startup policy. "We will actively work to connect the infrastructure of the military and client companies with startups' innovative technologies, helping them achieve commercialization and sustained growth."

Details on how to apply and the full scope of support are available on the K-Startup website.