S. Korea sets up defense industry trade promotion center

By Lee Joon-seung
SEOUL, Oct. 15 (Yonhap) -- South Korea has set up a dedicated defense industry
trade center to promote the export of locally made military hardware, the
government said Thursday.
The inter-government center established by the state-run Korea Trade-Investment
Promotion Agency aims to overcome the problems encountered when Korea Aerospace
Industries Ltd. (KAI) tried to sell its T-50 supersonic jet trainers to the
United Arab Emirates (UAE) earlier this year, the Ministry of Knowledge Economy
said.
Seoul, with little experience in exporting military aircraft, lost out to the
M-346 made by Italy's Alenia Aermacchi in February. The Italian company
reportedly offered the UAE extensive incentives to offset the cost of procuring
their planes that could not be matched by KAI without government support.
"The country makes the K-9 self-propelled howitzers, K-2 main battle tanks,
advanced jet trainers and utility helicopters that are globally competitive, but
no organization existed to facilitate such transactions at a state level," Chung
Jae-hoon, an official at the ministry said.
He stressed a unified support center is necessary because arms sales started to
gain momentum in recent years.
In 2006, exports stood at just US$260 million but reached $1.03 billion last
year. Noticeable sales include the KT-1 propeller driven trainer, and sales of
the K-2 tank to Turkey.
"Many foreign countries already operate such trade promotion organizations,"
Chung said adding such support will not only help strengthen the country's
defense capabilities but help businesses.
yonngong@yna.co.kr
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