April 24, 2024

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[THE INVESTOR] The government has allowed electronics companies to join a weapons procurement project with a foreign contractor for the first time, an industry source said on Aug. 7.

Under an “offset” procurement program, a foreign contractor is obliged to undertake local investment or buy local products when they sign a weapons deal with the South Korean government.

So far, local defense-related firms have mainly benefited from such arrangements, but the government decided to allow electronics, electric and aerospace firms to join the program, according to the insider.

Korea is planning to buy 90 more air-to-ground Taurus-class missiles from Germany’s Taurus Systems GmbH, and local technology firms have been asked to submit a list of products that they want to sell to the German firm, the source said.

The Korea Electronics Association, a lobby group for electronics and technology firms, asked its members to submit the list by Aug. 10, the source said.

By Alex Lee and newswires (alexlee@heraldcorp.com)