Page 188 - 2020 Defence White Paper

Seoul International Aerospace & Defense Exhibition (ADEX, October 2019)

supporting SMEs in entering overseas markets. ROK defense exhibitions such as
the Seoul International Aerospace & Defense Exhibition (ADEX), the International
Maritime Defense Industry Exhibition (MADEX), and the Defense & Security Expo
Korea (DX-Korea), which are held every two years, play a major role in developing
the country̕s defense industry into an export-oriented global industry. The 2019
Seoul ADEX, in particular, was a venue for successful international defense
cooperation that accommodated around 290,000 visitors and 430 companies from 34
countries–the highest ever–and resulted in consultations and contracts being made
worth more than USD 21 billion.

Thanks to such efforts, the scale of defense exports in recent years has grown
significantly compared to the past. In addition, regions targeted for export are
expanding from North America to Asia, Middle East, and Central and South
Americas, while the defense articles are diversifying from ammunition and guns to
2019 ADEX
advanced weapons systems such as mobile firepower, aviation, ships, and guided
weapons.
26)
A trade in which a buyer However, with the competition in the global defense export market intensifying in
of foreign weapons and
equipment receives certain recent years, the requirements set for by purchasing countries are becoming more
reciprocal services, such
as technology transfer diverse, hence requiring a policy change to find new routes for defense exports.
and guaranteed export
of domestic military Accordingly, to take the leap towards an export-oriented defense industry and create
supplies, from the foreign
counterpart to the contract. more jobs, the ROK government seeks to expand the exports of SMEs by converting
the technology acquisition-oriented offset system into an industrial cooperation
27)
26)
27)
A practice of a buyer of system. The government is also promoting various export methods such as exporting
foreign weapons and
equipment proposing a secondhand weapons systems, exchanges and counter purchasing, and leasing,
joint development and
production of parts and and is continuously enhancing its government-level support including financial
technologies or a joint
investment to the foreign support, inter-government sales, and linkage with industrial cooperation in other
counterpart to the contract,
or mandating a certain f elds. Organic cooperation among government ministries is expected to be vitalized
cooperative relationship
such as cooperation on by convening the "Defense Industry Development Council" for consultations on
exports of domestic parts
and technologies. government-wide support for defense exports.

2020 Defense White Paper