The Defense Acquisition Program Administration said on the 24th that, with the implementation of the system allowing defense materials to be produced and held by companies, it approved Hanwha Aerospace to hold one K9 self-propelled howitzer.
The core of the system allowing defense materials to be produced and held by companies is to let defense firms, with the approval of the head of the Defense Acquisition Program Administration, produce and hold defense materials for export promotion or their own research and development (R&D). A legal basis was established through a July last year amendment to the Defense Acquisition Act, and the system took effect when the enforcement decree and rules were revised in December the same year.
Before the system took effect, defense companies had to borrow equipment from the military authorities. They had to pay a rental fee to borrow it, or display maintenance substitute equipment or mock-ups, and they could not possess weapons even for purposes such as research and development. Maintenance substitute equipment refers to spare equipment provided so it can be used in place of equipment undergoing maintenance while it is in the shop.
The Defense Acquisition Program Administration expects that approving one K9 self-propelled howitzer will facilitate performance tests or modification and development for overseas exports. An official at the Defense Acquisition Program Administration said, "The expense and procedural burden that occurred during the lending process of equipment will also be reduced, allowing reinvestment in research and development and speeding up the acquisition of new technologies," adding, "concerns about gaps in military capability or management burdens will also ease."
Lee Yong-chul, head of the Defense Acquisition Program Administration, said, "The Defense Acquisition Program Administration will continue to improve the system by reflecting voices from the field."