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Korea's Defense Offset Guidelines Revised

Updated: Feb 6, 2022

The Republic of Korea's Defense Acquisition Program Administration (DAPA)published its revised version of the Offset Program Guidelines in December 2021.

Key changes made are as follows:

  • Offset ratio (Article 10):

  • Competitive contracts: No less than 50% of the estimated main contract amount (no change)

  • Non-competitive contracts: no less than 30% of the estimated main contract amount (from no less than 10%)

  • Penalty for contract violation (Article 23):

  • 10% of the unfulfilled portion of obligation within the implementation period (no change)

  • additional 50% of the unfulfilled portion of obligation and extinguish obligation after 1 year upon expiration of implementation period (added)

  • Offset Requirement and Banking (Article 13 & 28): Middle standing enterprises, along with SME, to be considered (added)

  • Receipt and Review of Offset Proposal and Offset Valuation (Articles 15 & 16): The portion of weapon system production that a Foreign Contractor allocates to a KIP to be deducted from offset value (added)

  • Definitions (DAPA Standard Operating Procedure)

  • Contractor or Foreign Supplier: a foreign company engaged in a contract with Contracts Team of DAPA or domestic company in order to supply equipment or goods (added)

  • Main Contract: includes contract between a domestic company and a foreign manufacturer when DAPA signs supply contract with the domestic company which then signs a contract with the foreign manufacturer (added)

#Koreanoffset #DAPA #KRIT

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델타원은 중소벤처기업부와 이노비즈협회가 주관한 해외인증 세미나에 참석하여 미 국방부의 사이버보안성숙도모델인증(CMMC) 제도를 소개하고 미국 시장 진출에 관심있는 한국의 기업이라면 사이버보안을 강화하기 위한 조치를 강구할 필요가 있음을 역설하였다. 온라인과 오프라인 혼합방식으로 진행된 이 세미나에 CMMC 인정기구의 전 의장 칼튼 존슨 들레인전략그룹 대표가

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