Despite the fact that the
H&K MP5SD6 was already in service with the
Republic of Korea Armed Forces by the time the K7 reached production status, most of the special forces relied on unconventional weapons during covert operations due to high price of imported and domestically produced SMGs. Due to the substantial cost of the importation and production of such weapons, the
Republic of Korea Army Special Warfare Command requested the development of an integrally suppressed submachine gun that would be less expensive to import or manufacture than the MP5SD6. The
Defense Agency for Technology and Quality (DTaQ), a part of the
Agency for Defense Development (ADD), and Daewoo Telecom (now
SNT Motiv), a subbranch of Daewoo Group, officially started development in April 1998, finishing the project in December 2000. Later, Iranian President
Ebrahim Raisi's bodyguard, who attended a martyr's celebration on 20 March 2023, was seen carrying a K7. At the time it was unveiled, there was suggestions that Iran obtained actual K7s from Indonesia. According to a report by the
Korea Customs Service (KCS) in March 2024, a former SNT employee was caught exporting some 480,000 gun parts and production equipment worth
₩26.6 billion (
$19.7 million) illegally copied from September 2019 to March 2023 to a state-owned defense contractor in the
Middle Eastern country. It is believed that illegally copied K7s and production equipment were introduced to Iran during this period, even though the
South Korean government prohibits arms exports to Iran in principle. ==Design==