PPS-MND MoU for Sustainable Corporate Growth and Defense Product Quality Enhancement

◈ PPS and the Ministry of National Defense(MND) signed an MoU for strengthening connection between *Innovation Procurement and a policy to introduce commercialized products into the military

◈ PPS expects that the reciprocal MoU will contribute to demand-driven innovation and procurement policies for excellent defense general supplies

*Innovation Procurement : A new paradigm supporting technological innovation and innovative growth in the private sector, offering services to satisfy public needs by fully using government purchasing power

□ PPS and MND concluded an MoU on September 21, 2022 in Seoul for a well-coordinated combination between Innovation Procurement and a policy to introduce innovative civilian products into the military.

▶ PPS Administrator Lee Jong-wook (on the left) and MOD Vice Minister Shin Beom-chul signed an MoU for tighter connection between Innovation Procurement and a policy to introduce innovative civilian products into the military.

□ PPS and MND agreed to the need for cooperation in identification of demand–driven innovation for military supplies, enhancement of procurement conditions for excellent defense general products, expansion of public purchase of Innovative Products so that they can enhance combat readiness and wellbeing of service men and women and also pave the groundwork for businesses to make innovative growth through quality improvement of military general supplies. Against this backdrop, both organizations consented to concluding an MoU to make the mutual cooperation work as intended

□ The MoU includes cooperative items to increase civilian-military mutual benefits through supportive measures for quality enhancement of military general supplies and corporate growth

1. Lay the foundation for sustainable growth through connection between Innovation Procurement and a policy to introduce innovative civilian products into the military

2. Strengthen cooperation in identification of demand-driven innovation and inventive products in defense

3. Develop and support policies and training courses for procurement of excellent defense general supplies

○ PPS and MND plan to set up a practical cooperation system including by forming a consultative group

□ Taking the opportunity of MND joining PPS’ incubating program, the MoU started to materialize

 ○ MND identified 5 tasks of demand-driven innovation to resolve defense issues in accordance with national agenda and PPS is to support MND to purchase and use Innovative Products designated through its incubating system

 ○ If the Innovative Product passes a military operation suitability test, MND will manage the product as an excellent commercial product suitable to pilot use and contribute to purchase of Innovative Products through registration onto the KONEPS Shopping Mall for defense general supplies

□ “The MoU is expected to facilitate the introduction of inventive civilian products into the military to satisfy the needs of young service men and women and contribute to quantum leap of businesses supported by stable demand from the military,” said the MND Vice Minister, adding “Our two government bodies will strive to make this project an exemplary case in joined-up government cooperation.”

□ PPS Administrator Lee Jong-wook said, ”More of the Innovative Products are expected to make inroads into the defense field through the Innovation Procurement system, which is to enhance efficiency for the national defense system“