DAPA introduces industry reforms

South Korea's Defense Acquisition Program Administration (DAPA) has rolled out reforms to help local industry expand in domestic and international defence markets.

Announced on 7 January, the new measures emphasise on reducing the administrative burden on companies looking to enter the defence sector and on encouraging greater participation in military research and development (R&D) projects.

To support local firms' access to defence programmes, DAPA said foreign suppliers have been mandated to source parts from local firms and procurement guidelines have been eased to enable two or more companies to submit joint bids for contracts.

Guidelines have also been adjusted to enable easier integration of commercial technologies into defence programmes and to encourage small and medium-sized enterprises (SMEs) to participate in R&D projects.

DAPA has adjusted its company-ratings criteria (designed to evaluate contract bidding) to make it less onerous on firms looking to win contracts. The agency has also eased other proposal-evaluation guidelines to remove what it said are “unnecessary regulations”.

DAPA said the reforms are expected to “further expand opportunities for companies to participate in defence, contribute to the development of the national economy, and revitalise the defence industry”.