South Korea's defense procurement agency will shift its "offset-trade" policy from technology transfer to industrial cooperation or local manufacture in its future deals with foreign defence exporters.
The change will lead to additional exports worth US$270 million between 2020 and 2024 and the creation of some 3,700 jobs, the Defense Acquisition Program Administration (DAPA) said in a statement Tuesday.
"We will change the policy focus from acquisition of defense technologies to the promotion of the country's defense industry or exports of its defense components," the DAPA said.
Under the current defence offset trade program in operation since the early 1980s, Seoul has sought technology transfers as one of the key tendering conditions before selecting foreign contractors to supply high-tech defense equipment. The technology transfer was intended to enable South Korean firms acquire the capability to manufacture defence hardware such as fighter jets and ships on its own.
The DAPA statement 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, Yonhap News reported.
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.
Rafale International (comprising Dassault Aviation, Safran and Thales) presented their contribution to the Make in India policy as part of the Rafale Offset program and presented the potential opportunities for French SMEs to also invest and set up production activities in India. Rafale International has won a contract to sell 36 Rafale jets to the Indian Air Force and has to execute 50% offsets as part of the deal
Indonesia has finalized the purchase of 11 Su-35 fighter jets with 85% offsets which includes 50% commodity exports to Russia and 35% in aircraft maintenance, repair and overhaul (MRO) of the $1.1 billion deal
Indias Bharat Electronics (BEL) and Russia's Rosoboronexport have signed a Memorandum of Understanding (MoU) for the joint development of various sub-systems of defense projects under the Offset clause at Defexpo India 2016 today. Under the framework of this MoU, BEL and Rosoboroneexport will co-operate for the joint development of various sub-systems of major Defence projects under the Offset clause of the Defence Procurement Procedure (DPP) of the Ministry of Defence, Government of India
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