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Abstract ▼ AI-Helper

Offset trade has been applied in Republic of Korea's defense acquisition programs since early 1980s and used for national economic development as well as enhancement of military capabilities. The accumulated offset trade value amounts to over 10 billion dollars by 2010. However, questions in regards...

Offset trade has been applied in Republic of Korea's defense acquisition programs since early 1980s and used for national economic development as well as enhancement of military capabilities. The accumulated offset trade value amounts to over 10 billion dollars by 2010. However, questions in regards to the effectiveness of offset trade have been constantly raised. As it is a quite difficult task to analyze and calculate the application performance of defense technologies acquired by offsets objectively, limited level of quantitative analysis of application performance have been conducted so far. Hence, in this paper, we came to understand the overall status of application of those technologies through in-depth performance analysis and suggested some specific policies for the further development of offset trade based on the analysis results. To begin with, we developed a questionnaire based on performance indicator deducted through literature review of relevant researches, and conducted survey of major offset recipients. Also, another survey of offset experts belonged to the army, government organization, research institute and companies was conducted to evaluate the performance and effectiveness of offsets qualitatively. And we analyzed the efficiency of application performance using DEA. The results of all surveys are showing that there is positive accomplishment in the technological aspect, but in economic aspect, it shows relatively inactive outcome. Based on these results, policy direction is considered to be changed from the emphasis on the acquisition of core technology to revitalization of domestic defense industry in line with new government's policy orientation.

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