Key Issues for the Defense Industry in Connection with the Implementation of Korea's Defense Semiconductor Act

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2026.07.09.

The Defense Semiconductor Industry Promotion and Support Act (the "Defense Semiconductor Act") has been enacted and is scheduled to take effect in December 2026. The Ministry of National Defense ("MND") and the Defense Acquisition Program Administration ("DAPA") are currently soliciting input from relevant government agencies and industry stakeholders as they prepare the Act's Enforcement Decree.

The Defense Semiconductor Act is the first Korean statute to establish a dedicated legal framework governing the research and development, production, and procurement of semiconductors used in military systems. In particular, the Act introduces a number of new regulatory mechanisms, including the designation of defense semiconductor businesses, the designation and protection of strategic technologies, preferential government procurement, and reliability testing and certification. These measures are expected to have a direct impact on fabless semiconductor companies (defense semiconductor designers), foundries, packaging and testing companies, defense prime contractors, and foreign component suppliers.

For more details, please refer to the full report attached below.

Attachment Key Issues for the Defense Industry in Connection with the Implementation of Korea's Defense Semiconductor Act.pdf

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