The National Assembly's Offensive
Starlink had managed to secure numerous contracts from the Ministry of National Defense following the success of the hostage rescue operation. Consequently, other defense contractors began to voice their complaints, feeling that the defense budget was becoming overly concentrated on Starlink. While there had been no requests for Taesik to appear before the National Assembly since the establishment of Starlink Defense, this session was different; the assembly summoned Taesik and his subsidiary CEOs, claiming they intended to investigate the "preferential treatment" Starlink was receiving. Taesik called Park In-tak and Jo Yun-je to Seoul to hold a strategy meeting regarding the summons.
"After the last round of summons from the assembly members, things had been quiet, so I assumed the parliamentary issue had been resolved. Why are they suddenly demanding our attendance now?"
At Taesik's question, CEOs Park In-tak and Jo Yun-je exchanged glances before Park In-tak provided the answer.
"It’s because Starlink has been allocated such a large portion of the defense budget recently. The defense contractors in the land and maritime sectors have been lodging complaints with the assembly members, which has led to this situation."
"I’m not sure about the maritime sector, but isn't the land sector already saturated? I was under the impression that most major weapon systems were already fully developed..."
"As you know, defense contractors have a structure where they cannot generate revenue without the Ministry of National Defense. You can consider them to be feeling a sense of crisis because of Starlink. Furthermore, the tension has reached its peak now that Starlink Aviation has acquired the engine division of Misung Techwin."
"Even for Starlink Defense, while the land sector used to account for a high proportion of our revenue structure, the launch of the Switchblade and GPS-guided bombs has led to a diversification of our income. The other contractors likely believe there is a high probability they will be acquired or merged into Starlink."
Since Taesik had no interest in anything outside of the aviation sector, he explained his position to the two CEOs.
"I have no intention of acquiring or merging with any defense contractors outside of the aviation field. How can we clear up this misunderstanding?"
"I think it would be best to declare during the National Assembly hearing that there will be no further mergers or acquisitions in the defense sector. You need to officially announce it to the other companies so they can feel at ease."
"By the way, do you have any idea what they might question us about during this session?"
"Unlike in the past, I expect the questions will focus less on Starlink as a company and more on the specific weapons we are supplying."
"I suppose I'll only know the specifics once I actually get to the assembly."
Taesik reviewed the list of expected questions provided by the two men, prepared for the hearing, and headed to the National Assembly the following day. Upon his arrival, the National Defense Committee questioned the Ministry of National Defense about their detailed plans for force enhancement before calling Taesik to the witness stand.
"Are you Kim Taesik, the CEO of Starlink?"
After the Chairman of the National Defense Committee had Taesik sign the oath, he ordered the assembly members to begin their questioning.
"I understand that Starlink Defense has recently been supplying GPS-guided bombs. I am aware that these GPS-guided bombs are more than three times more expensive than the JDAM (Joint Direct Attack Munition) imported from the United States. Isn't this excessive profiteering?"
While the American JDAM cost around 30 million won, the GPS-guided bombs were priced at around 100 million won. As the assembly member began his attack on the pricing, Taesik responded by comparing the specifications.
"Assemblyman, while the JDAM can only attack within a range of 30 km, our GPS-guided bomb is a weapon system capable of striking targets up to 100 km away. Since the ranges and purposes are different, I believe a simple comparison is inappropriate."
When the assembly member failed to gain traction with the pricing issue, he shifted his questions to the technical specifications of the GPS-guided bomb.
"Since you mentioned specifications, I will ask about them as well. It is said that the GPS-guided bomb requires an entry angle of at least 45 degrees to be effective. Doesn't this mean there are significant problems with the weapon system? Since the Korean Peninsula is mostly mountainous, I judge that if there are limitations on the entry angle, its utility is diminished. What do you think?"
"Assemblyman, the GPS-guided bomb is a glide bomb without an engine. If there are no obstacles in the target area, it can achieve an entry angle of up to 20 degrees, and it can approach targets at various angles depending on the user's settings. As you mentioned, because the Korean Peninsula is mountainous, we typically set the entry angle to 45 degrees, but that does not mean it is impossible to set it lower than 45 degrees."
The first assembly member, having exhausted his allotted time while Taesik answered his questions, passed the baton to the next member.
"Looking at the weapons Starlink has developed recently, you are developing them independently even when there is no requirement from the Ministry of National Defense. I believe that a defense contractor with limited domestic clients is developing unnecessary weapons and forcing the Ministry of National Defense to purchase them. Is it right to force the purchase of such unnecessary weapons?"
"Respected Assemblyman, Starlink has never once forced the Ministry of National Defense to purchase unnecessary weapons. The Switchblade developed by Starlink Defense is being exported not only to the Ministry of National Defense but also to the United States, the United Kingdom, and Australia, and our medium-altitude UAVs recently helped in a hostage rescue operation. Which of these weapons do you consider unnecessary?"
Following Taesik's pointed remark, the assembly member turned red in the face.
"Since the witness brought up exports, let's talk about something else. The Ministry of National Defense is investing massive R&D costs into Starlink Aviation to develop domestically produced aircraft, yet I understand that the export performance of the T-50 advanced trainer and TA-50 tactical lead-in fighter trainer is poor. Isn't it negligence to just take the investment without achieving exports?"
"Your point is valid, Assemblyman. To export fighter jets, they must be equipped with various armament capabilities. However, the T-50 series aircraft currently lack sufficient armament capabilities, failing to meet the requirements demanded by purchasing nations. Starlink intends to make large-scale investments to expand our armament capabilities and pursue exports. From now on, we will aim for the overseas market rather than just the domestic one."
The assembly member who had asked the question smiled with satisfaction as Taesik acknowledged his point and passed the baton to the next member.
"CEO Kim, you recently acquired Misung Techwin, didn't you?"
"Yes."
"Domestic defense contractors are feeling a sense of crisis due to Starlink's aggressive mergers and acquisitions. Do you have any plans to enter other defense industries besides aviation in the future?"
"Starlink is focusing its business on the aviation sector, and we have absolutely no intention of entering other fields. However, we do intend to supply weapons derived from technologies developed while conducting our aviation business."
As Taesik declared that he had no intention of entering fields other than aviation, the assembly member looked somewhat relieved and asked a follow-up question.
"You said you intend to supply weapons derived from your developed technologies, but it is a fact that weapons developed by Starlink without a requirement from the Ministry of National Defense place a burden on the Ministry. Do you have any intention of collecting the Ministry's opinions when conducting your own R&D in the future?"
"Assemblyman, South Korea's defense budget is currently around 27 trillion won, and of that, the defense improvement budget is only a little over 7 trillion won. I believe we are now at a stage where defense contractors must survive by expanding their scope through exports rather than targeting only the domestic market. Of course, I intend to collect the Ministry's opinions during R&D, but I believe we must now develop weapons that reflect global demand, not just domestic demand."
When Taesik shared his thoughts, the assembly member responded:
"I think it is good to export to the world rather than just domestically. However, in the case of the Switchblade, I believe it is a problem that you are exporting it arbitrarily without considering Korea's diplomatic relations. I think it is necessary to establish a specialized agency for domestic acquisition projects and exports to formulate export promotion policies. What does CEO Kim think?"
"If the government establishes an agency dedicated to exports and provides support, I think it would be helpful."
The assembly member who asked the question argued for the feasibility of establishing a Defense Acquisition Program Administration (DAPA) rather than relying on the Ministry of National Defense, and then concluded his questioning.
The assembly members' questions shifted toward the eradication of acquisition corruption and the establishment of a Defense Acquisition Program Administration to promote exports. Taesik spent his time comfortably watching the assembly members' questioning. After continuing their inquiries about the establishment of new agencies for a while, the assembly members returned to questioning Taesik.
"I have a question for CEO Kim. If companies proceed with development on their own, it is expected that there will be a lot of lobbying to get the developed weapons adopted by the Ministry of National Defense to achieve company profits. What do you think about this?"
"Even though the U.S. defense budget exceeds 1 quadrillion won, defense contractors are proactively developing weapons that the Department of Defense is likely to adopt. I believe it is right for South Korea not to sanction weapons that are proactively developed through company investment. Regulations on lobbying or negative activities should be prevented by thoroughly managing and supervising the acquisition of weapons."
After Taesik gave a principled answer and took a breath, another assembly member asked a question.
"You are aware that the President is planning a summit with North Korea this year, right? According to information I've heard, it is said that the Switchblade and the satellites held by Starlink were mobilized for an operation to remove ICBMs and Taepodong missiles. Is this true?"
As a sensitive question arose, Taesik observed the expression of the Minister of National Defense and replied:
"...Starlink is a South Korean company, and I will refuse the assemblyman's request for an answer."
When Taesik refused to answer, the assembly member looked flustered.
"You have taken a witness oath; how can you refuse to answer? At a time when the atmosphere of reconciliation with North Korea is ripening, I ask you to reveal whether there is any truth to the fact that you mobilized satellites for operations in North Korean territory without the permission of the Ministry of National Defense."
"I cannot disclose that."
At Taesik's refusal, the Chairman of the National Defense Committee scolded the assembly member.
"Respected Assemblyman, I do not think it is right to ask questions directly related to national security to satisfy personal curiosity. If an answer is required, please ask during a closed-door session."
The Chairman of the National Defense Committee declared a recess and called the assembly member over. After whispering to each other, they returned a moment later.
"We will be conducting a closed-door session, so those without security clearance, please leave the chamber."
As Taesik also stood up to leave, the Chairman stopped him.
"CEO Kim, you are a party involved, so please remain."
Once everyone except the Minister and Vice Minister of National Defense had left, the assembly member who had asked the question earlier asked again.
"Is it true that Starlink participated in an operation that took place in North Korea?"
"..."
As Taesik waited without answering, the Chairman of the National Defense Committee stepped in.
"CEO Kim, everyone here has security clearance. Please reveal the facts."
Taesik, lost in thought for a moment, decided to tell the truth.
"There is a fact that we provided support at the request of the National Intelligence Service."
As Taesik admitted this, the assembly members looked shocked.
"What do you intend to do if you attack North Korea first? Minister of National Defense! Were you aware of this fact?"
The Minister of National Defense looked flustered.
"Yes. I was aware of the fact during the security meeting."
"No! It is clear that if we attack North Korea first, a war will break out... Isn't that a very irresponsible action?"
The assembly members whispered to each other and began to corner the Minister of National Defense.