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. 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. 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. 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. 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. 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

Checked against the statutes on

Statutes and public notices change, so each case needs to be checked individually. Statute titles are given in English for reference. The Korean statutes are the authoritative text.

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?
No. Defense industry company designation is applied for to the Minister of Trade and Industry. The Minister consults the Defense Acquisition Program Administration before designation, and the security assessment is carried out by the Minister of National Defense through the Administration. Defense materiel designation requests are filed with the Defense Acquisition Program Administration.
How long does defense industry company designation take?
You are notified within 6 months of the application. Under Article 41(3) of the Enforcement Decree of the Defense Acquisition Program Act, the Minister of Trade and Industry notifies the applicant and the Defense Acquisition Program Administration of the decision and issues a designation certificate if designated. A defense materiel designation request is decided within 3 months.
Can a company making parts that are not designated defense materiel be designated a defense industry company?
Yes, under certain conditions. Designation is for companies that produce defense materiel, so if your product is not defense materiel you must first request its designation from the Defense Acquisition Program Administration. Parts or sub-assemblies can be designated only in the cases in the proviso of Article 40(1) of the Enforcement Decree, such as items containing core or defense industry technology or parts developed through the parts localization program.
How are major and general defense industry companies distinguished?
By the type of defense materiel produced. Companies producing items listed in Article 35(2) of the Act, such as firearms and fire support equipment, guided weapons, aircraft, naval vessels, ammunition, tanks and armored vehicles, radar and communication-electronic equipment, optical and thermal imaging equipment, combat engineering equipment, CBR equipment and command and control equipment, are designated major defense industry companies, and others general defense industry companies.
When can a defense industry company designation be revoked?
It can be revoked in the cases listed in Article 48(1) of the Act, such as falling short of the facility standards or security requirements. These include violating the integrity pledge, refusing supply contracts without just cause and submitting false cost data, and a hearing is held before revocation. For 6 months after revocation, designation cannot be obtained again at the same location with the same facilities.
Can an administrative agent prepare the defense industry company designation application?
Yes. Hwang Yunsang Administrative Office prepares the company designation application, the defense materiel designation request and attachments such as the production facility description and business plan, and files them with the Ministry of Trade and Industry and the Defense Acquisition Program Administration on your behalf. If supplementation is requested, we prepare the supplementary documents in the same way.

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.