U. S. FMS and ROK economic acquisition of weapon systems
Lee, Seung Joo
Laurance, Edward J.
Vaughan, Larry E.
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Since the Korean war, the military balance on the peninsula has continually favored North Korea. The North continues to pose an imminent danger to the peace and stability of the South. North Korea's recent swing toward the Soviet Union and the transfer of new technology further increases the threat. The importance of the peninsula to the East-Asia regional security has been emphasized. In FY 86, the U.S. Congress did not appropriate FMS funds for the Republic of Korea. This has resulted in increased defense expenditures that force the Republic of Korea to find a more efficient means of acquisition. It is clear that FMS pricing, contract and financing are critical areas to ROK's efficient acquisition of arms. Instead of a high-level political solution to the problem, negotiation and price analysis are found as the most important areas at the operational level to be improved in the ROK's FMS procurement. It is concluded that good price analysis and skilled negotiation will insure adequate requirement definition and efficiency in ROK procurements.
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