KKorea and NATO have decided to begin talks on a fundamental procurement agreement, enabling Korean defense firms to engage in NATO's collective procurement market, which is valued at approximately 15 trillion won ($9.9 billion) each year, according to National Security Adviser Wi Sung-lac.
Wi mentioned that the accord was established during a meeting between President Lee Jae Myung and NATO Secretary General Mark Rutte in Ankara, where the NATO summit is taking place from Tuesday to Wednesday. Lee is participating in the summit because of Rutte's invitation.
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"The agreement, once concluded, will provide an institutional framework for Korean companies to participate in NATO's joint procurement market," Wi said while pointing out that the market is estimated to be worth 15 trillion won per year.
“The agreement would give Korea a foothold to enter NATO's defense market, the world's largest,” Wi added, referring to NATO's 32 member states, which make up the world's largest defense procurement market with a roughly 55 percent share of global defense spending.
Wi mentioned that Korea and NATO talked about aligning defense standards as a part of their growing defense partnership.
"We expect the discussions to improve Korean companies' access to NATO's defense market by aligning with NATO's ongoing standardization efforts,” he says.
In response to Canada's choice on Monday to choose Germany over Korea for its submarine initiative, a decision largely viewed as influenced by NATO factors, Wi remarked that Korea and Canada "still possess extensive opportunities for collaboration in multiple areas as comprehensive strategic partners."
He mentioned that Lee and Canadian Prime Minister Mark Carney had already talked in detail about the submarine project during a phone conversation over the weekend.
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He also mentioned that the two found little reason to discuss the matter again during their short meeting at the NATO Summit, choosing instead to concentrate on opportunities for enhancing collaboration in various new fields, especially artificial intelligence.
A high-ranking Cheong Wa Dae official, on the other hand, brushed off conjecture that aligning defense standards with NATO would greatly impact Korea's relationships with other nations.
"Joint operation of weapons systems is expected to bring benefits such as lower maintenance costs, but that does not mean Korea is becoming part of NATO," he says.
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"We do not expect this to have a significant impact on our relations with countries such as China and Russia," he added, stressing that Korea would continue to cooperate with NATO as a partner country.