Currently, overseas exports of domestic defense products are gaining momentum starting with the Ukraine-Russia war. The way to continuously improve the competitiveness of domestic defense products is to utilize localization evaluation measures as a key tool to promote substantial localization advancement. This study aims to contribute to innovation in the way of working in the defense industry by inducing the level of localization to continuously upgrade by improving the evaluation plan for localization. First, the scope of the study is to understand the limitations of the current localization evaluation. Second, the effect on the total life cycle is analyzed when the localization evaluation is distorted. Third, finally, it seeks development solitions that can practically carry out localization. Qualitative research methodology is applied for the effective performance of this study. The opinions of various interest groups are collected and analyzed through the f irst and second Delphi surveys and in-depth interviews. Conflicting opinions are agreed through expert discussions in in-depth interviews. As a result of the performance of this study, it was analyzed that the current localization rate calculation method has a high possibility of abuse or distortion. In order to solve this problem, an agreement was reached that it was necessary to expand the scope of calculation to the 1st or 2nd partner companies. It was partially confirmed that when the result of calculating the localization rate is distorted, the effect is increased as the total life cycle progresses. However, in order to reduce the distortion effect of the localization rate at the operation maintenance stage, it was confirmed that it is not reasonable to convert the operational maintenance cost into the present value and reflect it in the localization rate. In summary, the current localization evaluation relies only on measuring the simple cost performance of calculating the localization rate, and there is a limitation that the possibility of abuse or distortion is high due to the limitation of the scope of calculating the localization rate to primary suppliers. In order to improve this, a model that comprehensively evaluates not only cost performance but also various performance is needed, but in the short term, it is realistic to maintain the current cost-related performance measurement method and expand the scope of localization rate calculation. The expected effect of this study is to seek ways to continuously promote localization by raising the need for improvement of localization evaluation measures, and furthermore, localization evaluation is used as a key tool to secure the external competitiveness of domestic defense products. In addition, various stakeholders may have conflicting opinions in various fields in the defense sector, and the introduction of qualitative research methodology can help each other share various perspectives and come up with solutions through discussions and agreements.