"Government-to-Government Deals Increasing Worldwide"... KOTRA Shares Export Contract Know-How with Korean Companies

"Increasing Government-to-Government Contracts Worldwide"
Enhanced Transaction Security, Cost Savings

KOTRA (Korea Trade-Investment Promotion Agency) held a business meeting for companies involved in government-to-government (G2G) export contracts, sharing export support measures with Korean companies.

On June 25, KOTRA hosted the "G2G Export Contract Business Meeting" at its headquarters. The event was organized to support Korean companies' overseas expansion and diversify export opportunities by utilizing the G2G contract model, which is commonly used for large-scale defense and infrastructure export projects.

Eleven companies participated in the event, including defense firms such as Hanwha Aerospace and LIG Nex1, as well as general trading and construction companies such as POSCO International and Dohwa Engineering. Participants shared information on recent G2G export trends and key issues, the characteristics and considerations of G2G contracts, success stories, and institutional improvement and support measures. They also discussed strategies to further expand G2G exports by Korean companies.

KOTRA Headquarters Exterior. KOTRA.

G2G exports involve the Korean government acting as a direct contracting party to conclude transactions with foreign governments, with KOTRA designated as the responsible agency. This approach offers advantages such as enhanced transparency and security in transactions, as well as significant reductions in the time and costs required to finalize contracts.

A representative from one of the participating companies stated, "Because G2G contracts are based on mutual trust between the two governments, they allow us to secure more favorable terms than B2G contracts, making them highly effective for expanding exports."

Lee Okheon, head of the Defense Industry Trade Support Center at KOTRA, commented, "With K-Defense continuing its strong export performance, requests for G2G transactions are increasing in regions such as Europe, the Middle East, Central and South America, and Asia. Moving forward, we will further expand G2G exports through proactive demand discovery, implementation management, and follow-up order reinforcement, accelerating our progress toward becoming one of the world's top four defense exporters."