Seoul: The state arms procurement agency announced Thursday that it is in the final stages of establishing a 160 billion-won (US$109 million) investment fund designed to enhance defense exports by domestic companies.

According to Yonhap News Agency, the fund, expected to be launched in the first half of next year, is supported by both the government and the private sector, with each contributing 80 billion won. It is the inaugural policy fund specifically crafted for domestic defense firms.

The fund's objective is to invest in small and midsized defense companies that have demonstrated overseas export capabilities or are aiming to integrate into the supply chain of global defense firms. This initiative is part of South Korea's effort to position itself as one of the world's top four defense exporters by increasing defense exports to $20 billion.