If foreign defense companies cooperate with Korean SMEs (parts manufacturing, etc.) that increase their value multiplier, the value is recognized up to three times higher than when cooperating with large and medium-sized companies. This ensures to promote cooperation between foreign defense companies and Korean SMEs and support SME’s entry into global cooperation in advance.

 

Thanks to the pre-value accumulation system (banking), overseas defense companies can accumulated their track record of cooperation (part manufacturing, export, joint development, etc.) with domestic companies, and then use them as a offset trade value for future orders. By operating this banking system, we support the establishment of long-term partnerships between domestic and foreign companies.

 

Industrial cooperation quota system will be introduced to ensure that when purchasing weapons systems from foreign defense companies, some parts of the system should be procured from Korean suppliers. The title of the offset will be changed to industrial cooperation.