The Defense Acquisition Program Administration (DAPA) in Seoul has announced the enactment of a ‘foundational’ new law that aims to expand the national defence industry’s share of both domestic and international defence markets.
The Act on Defence Industry Development and Support – otherwise known as the Defence Industry Development Act – comes into force on 5 February after being endorsed by South Korea’s National Assembly in January 2020.
DAPA said that since securing this approval it has drawn up a series of related sub-laws and regulations that will now be formally applied.
According to DAPA, the new legislation and its related measures encompass a series of national defence industry policies, initiatives, and support mechanisms to promote international sales of both major platforms and components and expand import-substitution efforts in terms of both research and development (R&D) and manufacturing activity.
By implementing the legislation, DAPA is aiming to source more than 80% of procured military platforms and their components locally. At present, this level of indigenisation is estimated by Janes to be about 65%.
DAPA is aiming to pursue greater market share in foreign defence markets through sales of components, systems, and major platforms such as Hanwha Defense’s Redback IFV. (Hanwha Defense Australia)
Kang Eun-ho, the head of DAPA, said, “The enforcement of the Defence Industry Development Act and its subordinate laws lays a solid foundation to transform the domestic defence industry into an internationally oriented sector.”
He added, “[The legislation is intended] to strengthen the competitiveness of the national defence industry in the domestic market and to help Korean defence products become recognised in the global marketplace.”
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