Defense companies in South Korea will be required to obtain government approval when appointing foreign nationals or dual nationals to executive posts or positions handling defense technologies, according to sources Friday.
The requirement is part of revisions to the Defense Acquisition Program Act and the Defense Industry Technology Protection Act, which were recently approved at a Cabinet meeting, sources familiar with the matter said.
The move comes amid growing concerns that appointing foreign executives at local defense firms could increase the risk of technology leaks. In December 2024, Hanwha Aerospace appointed American Michael Coulter as global defense CEO.
“As South Korea’s defense exports grow, the industry is expanding,” an official from a local defense firm said on condition of anonymity. “With companies becoming more active in overseas markets, the appointment of foreign executives is also likely to increase. The new law is expected to help ease concerns about possible leaks of defense technologies.”
Under the revised Defense Acquisition Program Act, defense firms must seek approval from the head of the Defense Acquisition Program Administration before appointing foreign nationals or dual nationals as executives or hiring them for positions dealing with defense technologies.
The DAPA chief must review the potential impact on the protection of defense technologies and notify the company of approval or rejection within 60 days of receiving the application.
The related revision to the Defense Industry Technology Protection Act also requires defense firms to establish and implement management plans when appointing foreign or dual-national executives or hiring them for technology-related positions.
Such plans must include details on the types and scope of defense technologies that may be handled, security control and access restrictions related to those technologies, as well as other requirements designated by DAPA.
The agency will conduct regular inspections to ensure the plans are properly implemented and may order corrective measures if violations are found.
The revised laws will take effect in September after a six-month grace period.
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