Abstract

Securing the ability of defense industry exporters to smoothly implement off-set is an important factor directly linked to the promotion of exports. Recently, however, Korean defense industry exporters have been having difficulty fulfilling their export off-set obligations after the contracts. Export off-set is an duty of exporters, but policy support is needed. Among the government-level support measures, the swap system can be substantial and strong support from the perspective of defense industry exporters. However, because of differences in institutions, laws, etc. between countries, the value of the off-set that need to be implemented between them may result in 'equivalence' problems that may not be equal in the value of the off-set that are set off in each country. The purpose of this study is to find out the problems of each type of swap with these problems and to propose the corresponding measures for calculating the value of the off-set to prepare the criteria for future swap negotiations. Considering that the scale of the swap is determined by negotiations with the other country, however, the priority of the negotiations should be considered in various ways, including relations with the other country and the security situation at the time of the negotiations. Therefore, we hope that the measures proposed by this study will lead to the readjustment of the swap system, which will soon lead to the improvement of export competitiveness of the nation's defense industry companies.

Full Text
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