▲ Defense industry

The Chungcheongnam-do Provincial Government formed a strategic alliance with Israel’s No. 1 state-run defense business.

On March 7, Governor An Heejung signed an MOU for strategic alliance in the aviation industry with Vice President Mark Gershburg of Israel Aerospace Industries Ltd. (IAI) in the latter’s office in Tel Aviv, Israel, with UI Helicopter CEO Rim Sung-eui  in attendance.

Established in 1953, IAI is the No. 1 state-run global defense business in Israel boasting of unrivaled technological prowess in the aerospace industry including military/civilian airplanes, helicopter-related MRO (Maintenance, Repair, and Overhaul), radar, strategic defense system, artificial satellites, etc.

IAI is looking for a business partner that will work with it on its plan to make forays into the Korean aviation industry. It is considering a joint venture with UI Helicopter, which is based in Yesan-gun, Chungcheongnam-do, in the helicopter-related MRO business.

As a government-designated defense business established in 1986, UI Helicopter is a small but powerful business specializing in helicopter-related MRO. It is the only Korean business certified by big-name helicopter manufacturers like Bell and Sikorsky of the United States and Finmeccanica of Italy.

The MOU requires that IAI give priority consideration to Chungcheongnam-do for its investment in Korea and the Chungcheongnam-do Provincial Government provide leased land and FDI-related incentives to it.

At the MOU signing ceremony, Governor An explained the status of the province as the mecca of the country’s defense-related matters in detail to those from IAI, along with the province’s long-term vision for the development of the defense science/technology industry centered on the strategic support system by taking advantage of its geographical location, where the country’s core defense institutions are gathered together.

The Chungcheongnam-do plans to establish a defense industry cluster in the province by attracting businesses with sophisticated technologies like IAI. Beyond attracting manufacturing facilities, however, it will concentrate its efforts on establishing high value-added industries including their regional headquarters and R&D facilities.