The defence industry of the Republic of Korea(ROK) has grown up since 1970, however it is facing a growth hindrance due to its structural problem. Many professionals of defense industry has developed some measures to upgrade and energize the defence industry of ROK, and also the current government is implementing various transformations and new policies under the initiative of cooperative independence defence. But most of papers published so far have some limitations resulting from their qualitative contents. And also it is true for them not to show policy alternatives devised by the system thinking. This paper identifies essential factors of defense industry, then analyze the causal relation among those factors. It also shows the causal loop to identify the politic leverages, on which concrete measures to resolve the structural problems are based.