Saturday, 4 Apr 2020

S. Korea launches arms export promotion centre

Seoul, South Korea's arms procurement agency on Monday launched an institution dedicated to supporting the country's defence firms seeking to advance into foreign markets.

The Defence Acquisition Programme Administration (DAPA) held an opening ceremony for the Defence Export Promotion Centre (DExPro) at its headquarters in Gwacheon, just south of Seoul, as Korea seeks to develop future growth engines in the defense industry.

"The opening of this centre signals that DAPA is making a shift towards the export sector from its mission focused on raising local defence firms," Wang Jung-hong, the DAPA chief, told a press conference, South Korean News Agency (Yonhap) reported.

The centre will provide defence firms with a comprehensive package of support, such as export-related administrative procedures and other services, DAPA said.

As part of efforts to boost arms exports, Seoul is seeking to increase the number of countries that South Korea has a memorandum of understanding on defense industry cooperation to 50 by 2022 from the current 39.

Concerns have persisted about a slowdown in the defence industry that has relied heavily on the limited domestic market amid increasingly fierce competition in the global market dominated by companies from the United States and other advanced countries.

South Korea has recently been pushing to reshape its defence industry into an export-driven one through a series of measures such as deregulation, policy improvement and expansion of global cooperation.

It particularly seeks to help local firms get a foothold in Southeast Asian countries, in tune with its New Southern Policy aimed at strengthening ties with those countries for enhanced economic and diplomatic cooperation.

To improve its support for arms exports, DAPA plans to install a division for international cooperation next week.

The plan includes installing a defence industry promotion agency aimed at supporting the local development and production of defence component parts, small and medium-sized firms and venture startups.

Source: Bahrain News Agency

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