This grahic shows a conceptual representation of the Low-Altitude Missile Defense system, provided by the Defense Acquisition Program Administration, Jan. 20. Yonhap

South Korea on Monday officially began the development of a homegrown interceptor system akin to Israel's Iron Dome to bolster its defense against North Korean artillery threats, the state arms procurement agency said.

The government plans to spend 479.8 billion won ($329 million) through 2028 to develop the Low-Altitude Missile Defense (LAMD) system designed to simultaneously intercept incoming artillery rounds, according to the Defense Acquisition Program Administration (DAPA).

South Korea has sought to strengthen its air defense capabilities in Seoul as North Korea has numerous long-range artillery pieces stationed within range of the broader capital area — home to half of the country's 51 million people.

DAPA said the system would help defend key military facilities against North Korean artillery threats, adding that it would push for the homegrown system's early deployment.

The project will involve the state-run Agency for Defense Development and defense companies, such as LIG Nex1, Hanwha Aerospace and Hanwha Systems, according to DAPA. (Yonhap)