Korean DAPA Achieves First Export Under Offset Trade with MBDA

South Korea’s Defense Acquisition Program Administration (DAPA) signed an offset memorandum of agreement (MOA) with MBDA for an offset trade arrangement involving MicroInfinity as part of the Meteor air-to-air medium-range missile project.

Offset trade allows for the export of domestically produced parts or the transfer of related defense technology in exchange for the purchase of weapons or equipment from overseas.

MicroInfinity, a small and medium-sized enterprise (SME) specializing in satellite navigation, was selected in 2023 as part of the 'Defense Innovation Company 100 Project,' which aims to foster SMEs in defense-related strategic industries, including AI, space, drones, robots, and semiconductors. The company has now become the first defense innovation SME to sign an export contract through an offset trade agreement.

Under the terms of the agreement, MicroInfinity will export anti-jamming receiver parts worth approximately $3.7 million to the UK. Additionally, the company will benefit from technical support and overseas training provided by MBDA.

The DAPA has been actively supporting defense innovation companies in joining the global defense supply chain by organizing export consultations with foreign companies, such as Lockheed Martin, and providing targeted consulting to help these companies secure partnerships or export contracts.