Business certifications & designations
Defense Industry Company Designation — Ministry of Trade Application, 8 Attachments and Defense Materiel Designation Request
A company that wishes to produce defense materiel must meet the facility standards and security requirements and be designated a defense industry company by the Minister of Trade and Industry under Article 35 of the Defense Acquisition Program Act. If the military supply it intends to produce is not yet designated as defense materiel, it may request designation from the Minister of the Defense Acquisition Program Administration; a designation request is decided within 3 months and a company designation application within 6 months.
Procedure
1. Check whether your product is designated defense materiel
Defense materiel is designated by the Minister of the Defense Acquisition Program Administration, in consultation with the Minister of Trade and Industry, from supplies classified as weapon systems; items listed in Article 35(2) of the Act such as firearms, guided weapons, aircraft, naval vessels and ammunition are major defense materiel, and others are general defense materiel. Designation is in principle made per finished product or major component, and items that two or more domestic companies are judged able to produce may not be designated (Article 40 of the Enforcement Decree).
2. File a defense materiel designation request (if not designated)
A company producing or planning to produce military supplies files the designation request under Form No. 3 of the Enforcement Rule of the Defense Acquisition Program Act with the Minister of the Defense Acquisition Program Administration, describing the operational concept, specifications and features, development status, localization record and plan, cost-effectiveness compared with similar equipment, production record and capacity, and the need for designation. The Minister decides whether designation is appropriate and notifies the requester within 3 months.
3. Meet the facility standards and security requirements
Facility standards follow the criteria set by the Minister of Trade and Industry for general and special production facilities, quality inspection facilities and technical personnel (Article 42 of the Enforcement Decree). Security requirements consist of 9 items, including protection of the site and facilities, personnel security, handling and storage of classified documents, protection of raw materials, communication facilities and protection of processed data (Article 44(1) of the Enforcement Decree).
4. Submit the company designation application and attachments
Attach to the application under Form No. 4 the articles of incorporation (for corporations), statement of financial position and income statement, description and capacity statement of production facilities, raw material usage and procurement plan, production and sales record and plan, business plan, training plan and technical capability statement for engineers and technicians, and safety measures plan, and submit them to the Minister of Trade and Industry. An already designated company applying to produce additional defense materiel only needs the 4 documents from the production facility description through the business plan, and there is no fee.
5. Facility and security assessment and issuance of the certificate
The Minister of Trade and Industry assesses production facilities against the standards, and the security assessment is requested from the Minister of National Defense through the Minister of the Defense Acquisition Program Administration. The applicant and the Defense Acquisition Program Administration are notified within 6 months of the application, and a designation certificate under Form No. 5 is issued if designated.
Required documents
- Application for designation as a defense industry company (Form No. 4 of the Enforcement Rule of the Defense Acquisition Program Act)
- Defense materiel designation request (Form No. 3 of the Enforcement Rule of the Defense Acquisition Program Act, if the product is not yet designated defense materiel)
- Articles of incorporation (corporations only)
- Statement of financial position and income statement
- Description and capacity statement of production facilities and major ancillary facilities
- Raw material usage record and procurement plan
- Types and specifications of products with production and sales record and plan
- Business plan
- Training plan and technical capability statement for engineers and technicians
- Safety measures plan and statement
Fees
Industry range of tens of thousands to hundreds of thousands of won · Depends on whether a defense materiel designation request is also prepared, the volume of attachments such as the production facility description and business plan, and whether it is an additional designation; we will advise after consultation. There is no fee for filing the company designation application.
Legal basis and review date
- Defense Acquisition Program Act, Article 34
- Defense Acquisition Program Act, Article 35
- Defense Acquisition Program Act, Article 47
- Defense Acquisition Program Act, Article 48
- Enforcement Decree of the Defense Acquisition Program Act, Article 39
- Enforcement Decree of the Defense Acquisition Program Act, Article 40
- Enforcement Decree of the Defense Acquisition Program Act, Article 41
- Enforcement Decree of the Defense Acquisition Program Act, Article 42
- Enforcement Decree of the Defense Acquisition Program Act, Article 44
- Enforcement Decree of the Defense Acquisition Program Act, Article 62
- Enforcement Decree of the Defense Acquisition Program Act, Article 64
- Enforcement Rule of the Defense Acquisition Program Act, Article 29
- Enforcement Rule of the Defense Acquisition Program Act, Article 30
- Enforcement Rule of the Defense Acquisition Program Act, Form No. 3
- Enforcement Rule of the Defense Acquisition Program Act, Form No. 4
Check these first
- Designation cannot be obtained if an executive of the applicant (including a spouse or lineal relative) was an executive of a company whose designation was revoked less than 3 years ago (Article 47 of the Defense Acquisition Program Act), so check the executive composition before applying.
- If control of a defense industry company substantially changes through sale, acquisition or merger, prior approval of the Minister of Trade and Industry is required, and failure to obtain it is a ground for revocation (Article 35(3) and Article 48(1)3 of the Act).
Frequently asked questions
Do I apply to the Defense Acquisition Program Administration for defense industry company designation?
How long does defense industry company designation take?
Can a company making parts that are not designated defense materiel be designated a defense industry company?
How are major and general defense industry companies distinguished?
When can a defense industry company designation be revoked?
Can an administrative agent prepare the defense industry company designation application?
Contact us
Hwang Yunsang Administrative Office in Songdo, Incheon prepares and submits administrative documents and explains the procedure. If your situation is similar, send us a message.
📍 2697, 26F POSCO Tower-Songdo, 165 Convensia-daero, Yeonsu-gu, Incheon, Republic of Korea · 📞 010-3374-2687 · 🌐 hwangadmin.com
This guide is general information based on public sources. Requirements, documents and deadlines differ by case and by the competent agency, so please confirm them before you proceed.
