President Lee Jae-myung has formalized the launch of negotiations for a "procurement framework agreement" between South Korea and the North Atlantic Treaty Organization (NATO), on the occasion of his meeting with NATO Secretary General Mark Rutte.
Wi Sung-lac, director of the National Security Office, held a briefing at a press center in Ankara, Turkey, on the 7th (local time) and said, "Through attending this NATO summit, we have secured a foothold for entering the world's largest NATO defense market and for building a solid defense supply chain with NATO." The procurement framework agreement stipulates the legal and administrative matters necessary for military and defense cooperation and procurement contracts between partner countries.
Wi assessed that "if the agreement is signed, it will establish an institutional foundation for our companies to participate in the NATO joint procurement market, which is expected to be worth 15 trillion won annually."
Among the "multinational cooperation projects" in which NATO allies jointly develop equipment, materiel, and capabilities, South Korea will newly participate as an observer in the defense raw materials project, in addition to the ammunition and space projects in which it has already participated as an observer. Wi explained, "The participation in multinational cooperation projects that began on the occasion of last year's Hague summit has expanded into a new field in just one year," adding, "This shows that Korea-NATO defense cooperation is not a one-off exchange but cooperation that broadens its roots year after year."
He also assessed that "participation in the ammunition and defense raw materials projects will strengthen the interoperability between Korea-NATO weapons systems, broadening the foundation for our companies to enter the NATO defense market, while also contributing to creating stable procurement conditions for our military supplies."
A senior Cheong Wa Dae official said, "Through the joint operation of weapons systems, we can expect significant effects such as reduced maintenance costs, but that does not mean our country is entering into the category of NATO. We are still cooperating as a partner country," adding, "It does not appear that this will have a major impact on relations with other countries such as China and Russia."
