South Korea launches cross-ministry task force to develop its own 'K-Palantir'

The Ministry of SMEs and Startups has launched a cross-ministry cooperation framework to nurture what it calls "future new-security innovation companies" — firms modeled on US data analytics giant Palantir Technologies.

The ministry said Wednesday it held the first meeting of the "Future New-Security Innovation Company Development Working Group," where officials discussed key follow-up tasks with relevant agencies. The meeting was convened to accelerate implementation of the "Future New-Security Innovation Company Development Direction" plan announced in June.

The working group includes the Ministry of SMEs and Startups, the Ministry of Economy and Finance, the Ministry of National Defense, the Financial Services Commission, the Ministry of Planning and Budget, the Defense Acquisition Program Administration (DAPA) and the Korea AeroSpace Administration (KASA), along with affiliated bodies such as the Korea Institute for Small and Medium Enterprises and Entrepreneurship, the Korea Technology and Information Promotion Agency for SMEs (TIPA) and Korea Venture Investment.

The government plans to foster companies with advanced security-related technologies — including AI and drones — through a coordinated cross-ministry effort, with the dual aim of strengthening national security capabilities and laying the groundwork for new industry growth. The stated goal is to produce globally competitive innovators on the scale of Palantir.

Palantir is the company behind Gotham, an AI-powered platform that integrates and analyzes vast battlefield data. Its major customers include the US Department of Defense and intelligence agencies, and its market capitalization stands at approximately $300 billion.

To that end, the government will pursue six initiatives: designating strategic new-security fields and qualifying innovation companies; building a rapid procurement system based on identified innovation needs; expanding large-scale R&D support and military demonstration programs; establishing a Korean version of In-Q-Tel; strengthening intellectual property protection and expanding market access; and building a pan-government cooperation framework.

The government plans to benchmark the CIA's In-Q-Tel model. In-Q-Tel is a specialized investment body through which the government directly invests in new-security innovation companies holding emerging or critical technologies in strategic fields, with the government absorbing the investment risk.

The meeting focused on a range of issues: the working group's operating procedures; criteria for designating strategic new-security fields and qualifying innovation companies; a roadmap for designating future new-security strategic fields; a schedule for enacting or amending relevant legislation; plans for a defense open-innovation event and investor relations forum; and the establishment of Korea Strategic Technology Partners (KSTP), a technology-specialized asset management firm.

The Ministry of SMEs and Startups said it will establish a framework for designating strategic fields and pursue special legislation to develop the future new-security sector as a core national growth industry. It also plans to build a support system covering the full growth cycle for innovation companies — from R&D and investment to technology demonstration, public procurement and overseas market entry.

The government intends to convene the working group monthly to monitor progress and will announce detailed plans — including criteria for designating strategic fields and qualifying innovation companies, and a blueprint for the Korean In-Q-Tel — on a rolling basis.

The launch of the working group reflects a broader shift in how defense industry is defined, as the concept expands from a weapons-system focus to a "new-security" domain drawing on civilian advanced technologies such as AI, space, drones and cybersecurity. The government said it will pursue regulatory reform and increased investment in parallel to speed the application of innovative technologies from private startups and venture companies to the defense sector, with the aim of building a new-security industry ecosystem.

"Fostering new-security innovation companies is a new growth engine that simultaneously supports national security and the creation of new industries," said Park Yong-sun, director general for SME policy at the Ministry of SMEs and Startups. "We will work closely with relevant ministries to build a support system encompassing investment, R&D, commercialization and public procurement, so that innovation companies can lead global markets."