The Korean Ministry of National Defense has recently completed its RFID (Radio Frequency Identification) ammunition management system. Pilot testing in the seven troops under its army, navy and air force is slated to begin in July 2005. The new system will enable the ministry to instantly trace the inventory level of major ammunitions and will automatically report settlements at the end of each day. The Ministry of Information and Communication has chosen this system as one of the first RFID management demonstrations. The government has allocated 570 million KRW since August 2004, entrusting LG Hitachi and Korea Institute for Defense Analyses with the development of this RFID system.