DAPA rolls out capability support measures

South Korea's Defence Acquisition Program Administration (DAPA) has outlined a series of measures to support the national defence industry to respond to challenges stemming from the Covid-19 pandemic.

DAPA said on 22 July that the measures – some of which were recently introduced and some of which will be launched soon – are intended to further stabilise the industry base in the face of disrupted operations and decline in revenues.

The measures, most of which are positioned to support small- and medium-sized companies, are also aligned with a stated DAPA priority to ensure that defence industry jobs and skills are sustained throughout the pandemic.

DAPA said measures introduced in recent months cover several areas including the easing of administrative and procedural burdens on firms, enhanced transparency about DAPA capability requirements and future contracts, and the roll out of incentives for local firms to replace imported systems and technologies.

According to DAPA, new policies to be launched in the next few months include improvements to DAPA's defence contracting system, addressing delays in contract payments, the easing of rules governing contractual penalties, and incentives and support for job creation efforts.

In 2020 DAPA also initiated schemes to support local firms. These were focused on providing support for exports during the pandemic, the provision of company loans, the adjustment of contract delivery schedules, and efforts to reduce the importing of components.