This study focuses on the Security Incident Demerit System applied in the defense industry. Specifically, it examines the definition and current status of the system and identifies issues arising in its implementation. Furthermore, the study explores ...
This study focuses on the Security Incident Demerit System applied in the defense industry. Specifically, it examines the definition and current status of the system and identifies issues arising in its implementation. Furthermore, the study explores potential solutions to address these problems. The research findings are as follows. First, two major issues with the Security Incident Demerit System were identified. The first issue is that, in defense projects, contract awards are determined not by differences in technological capability but by deductions resulting from security incidents. The second issue is that, from the perspective of companies, the fear of security-related demerits may lead them to focus more on concealing or downplaying security incidents rather than investing in research and development to enhance defense technology. Second, the study proposes two solutions to mitigate these issues. The first solution suggests replacing the current demerit system with a fine-based penalty system, emphasizing the need to establish clear criteria and scope for fines. The second solution proposes maintaining the current system but adjusting the scope and criteria of demerits to be more realistic. This approach reinforces the importance of security, which is a critical factor in the defense industry.