Choi Eun-soo, CEO of IntelliVIX: “A Formalized Professional Advisory Window Is Needed to Support Defense Entry for SMEs with Advanced Technologies”
Choi Eun-soo, CEO of IntelliVIX, attended the “AI-Centered K-Small and Medium-Sized Defense Global Competitiveness Enhancement Seminar” held at the National Assembly Hall on the 28th of last month. At the seminar, he emphasized that “a dedicated professional window is needed to provide consultation and support for advancing the outstanding technologies of small and medium-sized enterprises into the defense sector.” He also proposed four policy measures:
① adjusting the classification system for military surveillance cameras,
② preserving the cost of test and evaluation in procurement projects,
③ strengthening restrictions on the participation of large companies, and
④ applying a negotiation-based contract system.
To hear his views in more detail, the reporter visited IntelliVIX, a company specializing in image analysis artificial intelligence (AI), on the 23rd. The company has independently developed a Vision Language Model (VLM) engine that combines Vision AI and Generative AI, pioneering a “data-driven monitoring” market. It is also the world’s first safety AI company to develop an all-weather AI camera sensor, VIXallcam, capable of detecting objects at distances of up to 200 meters in snow, rain, fog, and nighttime conditions. Of its 163 employees, 113 (approximately 70%) are engaged in R&D, and the company holds 51 patents.
CEO Choi explained, “VIXallcam is a successful case of developing an AI convergence system based on proprietary camera sensor technology. It is currently undergoing testing in the military as an AI guard for GOP units.” He added, “It has been selected as a CES 2026 Innovation Award honoree, demonstrating the innovation of all-weather AI vision technology.” He further noted that the company’s video analysis AI technology has been recognized for its performance in the United States, China, and Europe, and that IntelliVIX was also selected this year as one of the Defense Innovation Companies 100.
Choi pointed out the difficulties faced by SMEs, stating, “Even when companies have strong technologies and products suitable for defense applications, they often struggle to determine where and how to introduce them.” He added, “Although we try to contact various departments, many military personnel and civil servants lack technical expertise and are extremely cautious about being misunderstood when meeting companies. As a result, it takes excessive time and effort to identify a path toward commercialization.” He emphasized the need for a unified window that connects SMEs with responsible departments, provides feedback, and supports commercialization.
The four proposals Choi presented at the seminar were based on his firsthand experience participating in defense projects. First, he noted that military procurement standards for cameras are largely based on conventional CCTV specifications—such as 2MP resolution, color imaging, and high resolution. “Even if a company develops AI-based equipment that exceeds these standards, it is often not properly evaluated, making participation in projects difficult,” he said. He stressed the need to diversify the military equipment classification system to encourage participation by innovative companies.
Second, he highlighted the burden of test and evaluation costs. Currently, companies participating in defense procurement projects must bear the cost of equipment production and test evaluations conducted by the Defense Acquisition Program Administration, which can amount to hundreds of millions or even billions of won. If a company fails to secure the contract, none of these costs are compensated, causing significant financial strain. “Relevant laws and regulations should be revised so that the government compensates actual expenses for eliminated companies, as is done in countries such as the United States and Australia,” he said.
Third, Choi addressed restrictions on large companies’ participation. Under current regulations, large companies with sales exceeding ₩800 billion are restricted from participating in public software projects below certain thresholds. However, he argued that despite decades of currency devaluation, these thresholds have not been adjusted, allowing large companies to encroach on the market traditionally served by SMEs. He proposed revising the Software Industry Promotion Act and related guidelines to raise the participation threshold for large companies to around ₩20 billion, enabling SMEs with innovative AI technologies to compete more fairly in defense projects.
Fourth, Choi emphasized the need to apply a negotiation-based contract system rather than the existing lowest-bid method. “In many cases, projects ordered by the Defense Acquisition Program Administration apply the lowest-price bidding method, which can lead to the introduction of low-quality products or cause capable companies to withdraw from defense projects due to financial losses,” he said. “For projects involving new technologies, negotiated contracts should be applied as a priority.”
In addition, Choi pointed out issues arising during the budgeting process. “Even when project budgets are reduced, projects are often carried out as originally planned without adjusting the required quantities,” he said. “As a result, companies participate at a loss or face the risk of shutting down.” He emphasized that relevant regulations, such as the Defense Power Generation Service Order, should be revised so that project scopes and quantities are adjusted in proportion to budget reductions.
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