In a significant step towards bolstering international defense relations, the Canadian Commercial Corporation (CCC) has signed a Memorandum of Understanding (MOU) with South Korea’s Defense Acquisition Program Administration (DAPA). The DAPA oversees the defense procurement for South Korea’s military forces.
The MOU was ceremonially signed in Ottawa by Seok Jong-gun, Minister of DAPA, and Kim Douglas, CCC’s Vice President of Business Development and Marketing. This agreement aims to foster collaboration between Canada and South Korea in the defense sector, focusing on sharing expertise in government-to-government (G2G) procurement, facilitating networking among defense firms, fulfilling Industrial and Technological Benefits (ITB) requirements, and exploring potential joint ventures for third-party markets.
“CCC’s MOU with DAPA will help strengthen defense cooperation between Canada and South Korea by providing Canadian businesses with opportunities for G2G contracts, networking, and joint ventures,” said Kim Douglas, VP of Business Development and Marketing, CCC.
South Korea stands as Canada’s seventh largest trading partner and ranks sixth in both import and export volumes. The newly signed MOU signifies a pivotal advancement in the bilateral relationship, paving the way for enhanced dialogue and exchange of information related to defense industry and procurement opportunities. Under this MOU, CCC will identify Canadian companies with suitable defense solutions for South Korea and facilitate the signing of G2G contracts.
CCC has a long-standing tradition of forming MOUs with governmental buyers, enabling G2G contracts that comply with national procurement regulations. Each G2G contract executed by CCC carries the weight of being endorsed by the Government of Canada, ensuring performance and mitigating political, business, and payment risks for Canadian exporters. This also significantly reduces procurement risks for international government buyers.
This partnership with DAPA aligns with Canada’s Indo-Pacific Strategy, which aims to create new security cooperation opportunities with South Korea. As the Indo-Pacific region rapidly grows and South Korea emerges as a key economy, this market becomes increasingly vital for Canadian businesses. In addition to this, CCC is extending its support to Canadian companies across the Indo-Pacific. Recently, CCC signed an MOU with Indonesia’s Ministry of State-Owned Enterprises to secure access to Canadian agricultural commodities like potash, wheat, grains, and soybeans.