North and South Korea might be working on peace – but there’s long way to go before delimilitarisation might occur and vigilance will likely last forever.

That could be an opportunity for ASX-listed Department 13 (ASX:D13) which has signed a distribution deal with Korea Counter Terrorism Solutions (KCTS), a distributor of defence and counter terrorism solutions in South Korea.

Department 13 hopes to sell its MESMER anti-drone system to Korean military cusomers as well as airports, manufacturing plants and big corporations.

The tech play failed to sell any MESMER systems in the March quarter, banking $507,000 in receipts from sales made in the previous quarter.

The December quarter was D13’s first cashflow positive period with $2.3 million in receipts.

“D13 currently has requests for quotes in the market across multiple jurisdictions and industries,” the company told investors. “The company remains confident that sales will materialise, and notes decisions upon purchasing MESMER typically require multiple approvals from various levels of authority within both private and public institutions.”

The new Korean distributor will market D13’s MESMER anti-drone sytem alongside an arsenal of products including radiation detectors, radioactive decontamination, exposure medicine and cyber-terror hacking defence.

“The 4th industrial revolution is on the rise, led by the drone industry and drones are only getting smarter, faster, and stronger, becoming a serious threat to government organisations, infrastructure, and corporations,” KCTS chair Euikwon Yoon said.

Department 13 hopes to sell MESMER Korean military cusomers as well as airports, manufacturing plants and big corporations.

Department 13 (D13) shares over the past 3 months.
Department 13 (D13) shares over the past three months.

The addition of South Korea takes the company’s distribution footprint to nine territories – including with defence giant Raytheon in the US and in Japan, South America and France.

“South Korea has a highly concentrated urban population with over 25 million residents living in Seoul alone,” D13 said.

“Marked by terrorist attacks and North Korean provocations, which continue to threaten national security and public safety, coupled with a strong reputation for early adoption of new technology, the South Korean market represents a substantial opportunity.”

Instead of the traditional “jamming” technique, its proprietary MESMER system targets each drone to take over communications and tell it what to do.

Shares in the company were trading at 8.2c ast 12.30pm AEST Thursday – up on the previous close by 4 per cent.

D13 is working on future sales with the US department of defence and marine corps as well as customers in China, Middle East, Australia and New Zealand.

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