Policy way forward

  • Expand defense exports

  • Broaden SME’s participation

  • Widen defense industry

Promote to expand defense exports via offset programs

  • Transition into more practical policy (manufacturing and export parts of weapons systems, etc.) to accelerate virtuous cycle of economic growth such as export boost, job creation, etc. since foreign contractors' tend to protect core technologies and to avoid the technology transfer
  • Introduce and Facilitate Industrial Cooperation Quota system
    • Execute the the program in the form of consortium between local company and foreign company since the Industrial Cooperation Quota system is introduced; in which foreign contractor shall use Korean parts at a certain ratio for its weapon system when DAPA procures foreign weapon system.
  • Facilitate "Banking" system

Broaden defense SMEs’ participation

  • Take advantage of offset programs to enhance the competitiveness of SMEs serving as supply sources of defense parts · materials
    • Provide foreign companies with Offset Promising Item List and requirements with expanding SMEs’ items
  • Strengthen defense competitiveness based on the mutual growth between large-middle standing enterprises and SMEs (Mutual Cooperation)
  • Grant the multiplier of 3 to SMEs' export volume which is two times more by comparison with large and middle standing enterprises to scale up the support of SMEs' defense export