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.
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