S. Korea's offset arms trade policy to focus on industrial cooperation

SEOUL, June 26 (Yonhap) -- South Korea's defense procurement agency said Tuesday that it will shift its "offset-trade" policy focus from technology transfer to industrial cooperation in its future deals with foreign exporters.

Under the offset trade program introduced in the early 1980s, Seoul has sought to set conditions, such as technology transfers, before selecting foreign contractors to supply defense goods, including fighter jets and other high-tech weapons systems.

The Defense Acquisition Program Administration (DAPA) said that it will begin enforcing the change in stages later this year after revising a set of related rules. Seoul's defense project promotion committee endorsed the change on Monday.

"We will change the policy focus from the acquisition of defense technologies to the promotion of the country's defense industry or exports of its defense components," the DAPA said in a statement.

The change also includes an "industrial cooperation quota" system, which requires foreign exporters to supply their defense products partly comprised of components produced in South Korea.

The DAPA said that the change will lead to additional exports worth US$270 million between 2020 and 2024 and the creation of some 3,700 jobs.

sshluck@yna.co.kr
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