Recently, the Korean government announced a change in the policy of fulfillment of the Offset Obligation from defense technology transfer to the export of the Korean defense products or industrial cooperation. As a result of the above policy, foreign contractors who want to sell defense systems to Korea have to purchase Korean products before or after sales of defense systems. They must maintain close relations with parts manufacturers and establish and maintain a lot of information and management system for Korean suppliers such as parts suppliers, parts supply, delivery and quality control.We’d like to solve the problems of contractor’s offset obligation by various distinctive ways. Based on the accumulated MRO business and our local supply chain, we can perform as a gate or provider for all processes from introduction, production, delivery to the quality control of Korean part supplier for offsets fullfillment payback for overseas contractors.

In addition, we are going to establish a US entity in the United States to enter the US procurement market.If Bosung USA is designated as contractor’s partner or third party provider, it can also be recognized as an offset obligation fulfillment. Also, if Bosung participate as a partner in the overseas MRO project of the contractor’s system, this can also be recognized as an fulfillment of the Korean Offset Obligation.Through the Offset Obligation Business, we will be a Solution Provider for the fulfillment for Offset obligations of foreign contractors who want to sell defense system to South Korea as well as middle East countries.