Aerospace industry efforts to work with the u. S. And south korean militaries to address north korean aggression and nuclear capability. Okay. Now we can kick off the next Panel Discussion. And again, we have two presenters and two discussants. And this panel is focused on opportunities for collaboration, cooperation in the Aerospace Industry. And to my left our first presenter is ms. Elana broitman who is the who is currently at the center for a new american security, their new york im sorry. Got that one wrong. The new America Foundation apologies. The new America Foundation. There is a lot of think tanks in town that all do incredible work. And sometimes one can confuse them. She is i think running the new york office for the new America Foundation. She is the former Deputy Assistant secretary of defense for manufacturing industrialbased policy and grappled with all of these issues about the structure of the Aerospace Industry, its increasingly Global Nature and how that affects both u. S. Defense inherently and also the opportunities for cooperation between the u. S. And other allies. To her left is dr. Wonkoon jang. He is the director of defense and Aerospace Industry division and Research Fellow at the Korean Institute for Industrial Economics and christmas day. Kia, our partner in this conference. He is also a member of the Defense Division of the National Science and Technology Council in korea and Editorial Board member of the journal of the Korean Association of Defense Industry studies. He has received his ph. D in economics from Seoul International university. He also graduated from the u. S. Air force institute of technology in 1998 with a masters in logistics management. And works as i mentioned at kia. To his left with our discussants im a little bit out is Major General wonjin oh, who i also believe was a participant at last years conference. He has agreed groid to make a repeat appearance. We thank him very much for that. He is director general of the Defense IndustryPromotion Bureau at dapa. He was an Artillery Brigade commander in the 26 infantry division. He has also served as chief of the j5, joint combat Capability Development division. So he has a deep background in acquisition both as a war fighter, as a requirements generator and as an official in the acquisition system. And to his left we have doug greene luau who is the Vice President and the regional executive for asia, the Lockheed Martin company. He is responsible for leading Lockheed Martins business area to facilitate and unify the corporations operational and functional strategies across its full portfolio within asia. And his responsibilities span from india to korea, but do not include japan and australia, if im reading this correctly. So he is very laser focused on that area that includes korea. Previously he was a Vice President of International Strategy at Lockheed Martin and has a long career in industry, culminating in his current job. And to his left is mr. Yong sic yi who is a managing director and leads the advanced Pilot Training development at Korea Aerospace industries, kai, another one of our Conference Participants and sponsoring organizations. He joined kai in 1988 and started his work as a share contractor on the korean trainer experimental, which developed into the t50 program which is now operating around the world. And hell be acting as another one of our discussants. At this point i would like to turn it over to elana to deliver the first presentation. Thank you, andrew. Thank you for inviting me here. Its been a really interesting discussion so far. Im looking forward to hearing from my copanelists. Ill start with the fact that the republic of korea is one of the United Statess most important economic and Strategic Partners in asia. Both the strategic nature and the economic nature of the partnership are very important components to the relationship. As we all know, since the early 1950s, our mutual defense treaty has tied the two nations together in a cooperation pact with nearly 30,000 u. S. Troops based in rok and the u. S. Nuclear umbrella expanding to cover the country. And our two countries economies are also joined by a trade agreement that have a significant trading relationship. South korea is our seventh largest trading partner and the United States the roks second largest trading partner. I think this also gives a backdrop to the Defense Industrial base, which is clearly a very important economic issue as much as it is a strategic and defense one. While the u. S. Run answer overall trade deficit with the republic of korea, ranging in the high teens, our Aerospace Sales remain one of our strongest exports. Just a few figures. Over a five year average from 2011 to 2015, u. S. Defense products accounted for about 80 of koreas total defense imports. And the republic of korea is regularly among the top customers for Foreign Military sales from 08 to 16, contracts with the u. S. Totaled close to 16 billion. And commercial acquisitions of u. S. Defense systems totaled close to 7 billion. In fy 16 alone, the Defense Cooperation Agency cited the health of this relationship i believe is due to at least two factors. One is the republic of koreas defense needs. And second are the Technology Transfers that can support roks technology industries, health and sales abroad. When it comes to the defense relationship, for decades u. S. Industry enjoyed unparalleled access to the republic of koreas purchasing. In recent years, however, firms from europe to the middle east have given u. S. Firms quite a bit of competition. And that is not just true of this relationship. This is true overall of u. S. Defense sales. While the u. S. Industry may still enjoy a reputation for Cutting Edge Technology and brings with it the benefit of equipment, nonu. S. Competitors also out the more than a few advantages. First, there are fewer restrictions on intellectual property and Technology Transfers very often. Foreign governments are more singleminded in their industrial support for their own companies. And competitors can be less expensive, particularly when u. S. Products are required to be sold via military sales. Although it must be noted the hurdles for south korea have been lessened quite a bit and now are on par with nato countries which has been a boost to the relationship. Now these issues have been before the department of defense for many years. And theyre not easy to grapple with. Another issue that sprung up in recent years has been a strategic one. Frisk, the sales of the thaad system was first protested by china which appeared to retaliate economically against republic of korea firms. While that has found its way to a solution, that turns out to be that political dimension turns out to be an important piece of the relationship between our defense industries. I also mentioned that offsets in Technology Transfers are a significant issue in the relationship. And that was certainly discussed in the last panel. Nor is it true only of this bilateral relationship. But the roks Aerospace Industry is itself expanding. Two years ago it was triple the size of what it was five years before that and the government naturally seeks to support that growth. Koreas defense reform 2020 initiative, as i understand it, emphasizes the development of indigenous capabilities by increasing the percentage of funds allocated to defense, research and development. The republic of korea also aims to improve the competitiveness of its Defense Industry, and korean firms compete internationally in the armored vehicle, ship building and aerospace industries. Thus the republic of korea naturally seeks to secure Technology Transfers as part of the defense sales from the u. S. At the same time, this is an opportunity for crossborder collaboration that benefits both partners. For example, and ill cite Lockheed Martin, although one of my friends on the panel could speak to that much more. But lockheed and Korea Aerospace industries currently develop the t50 golden eagle. A trainer Fighter Aircraft that has been successful on the international market. Southeast asia is considered to be a major market for roks defense equipment, and could potentially be an opportunity for the u. S. Defense Industrial Base as well through that kind of partnership. So if asked what is the outlook, i would say that under the current u. S. Administration, there may be some mixed signals. On the other hand, President Trump has been very forward leaning about u. S. Positions towards north korea and has aggressively pushed u. S. Sales to allies sunshine asch as rok. On the other hand, the u. S. And congress are pulling back from International Engagements by proposing an updated statute that can complicate Aerospace Ventures between u. S. And foreign companies. Given the wild card of north korea, it is hard to use the usual analytical tools to examine the bilateral air wroe space relationship. I dont see any reason that that will slow down. And will continue to animate very strongly what happens in the bilateral defense relationships between our two countries and the two defense industries. Thank you. Dr. Jang . Im dr. Jang, director of defense in the Aerospace Industry division in korea, kia. Im proud to be here because its kied of a big conference. Because i started here two years ago, at a small seminar, i hope it will continue to large and help informal the future, because its important presentation today. Im going to present my present my own words in korean afterwards. Translator the topic is entitled strategic cooperative ways between our two nations, rok and the United States. And the status quo related to military airplane and the analysis. And the key is how we can improve cooperation in the industry ubetween our two nations. The trump government that was sworn in as lead their year proposed a modern version of the weapons system as one of the six major policies through the en t enactment of the ndaa 2018. It is estimated it will spend about 700 billion next year for military budget and the third offset strategy will compel the United States to pursue stateoftheart drones and the longrange bombers with more investment in the aero industry or the airplane related research. With the increase in the military budget and because of the increase in the demand for the Civil Alliance in the emerging nations, including china, it seems that the aero market will be estimated at around 840 billion by 2023. And with a new government in seoul in may, potential committee for the fourth Industry Evolution was introduced to cope with the new technology that includes drones, another development in the aero industry in this friendly atmosphere, we need to actively seek ways to cooperate aero industry cooperation between two nations and further promote synergies. A quick look at the global trend in the aero industry. As i stated earlier, there is an increase in the civilian demand, and more budget expenditure in the military. And with the advance of the fourth industry of evolution, mro and performancebased logistics is actively cooperating or rather promoting convergence in the product and service markets. And a quick look at the korean air industry can be seen as follows. As of 2016, our production stood at 5. 1 billion, which was 90 higher than five years before, which largely revolved around civil aircraft and t50 sales. And the military production is taking up 58 , playing a major role in the growth of this industry. When it comes to the export regarding the customer basis, our deliver basis, as of 2016 it stood at 2. 6 billion. So export accounted for 51 , and the military logistics were explained by t50 kp1 advanced trainer recording . 9 billion compared to five years before. Because of this booming aero industry, employment stood at 14,400 people, representing an increase from four years before. So it is making really healthy contribution to the policy of the new government to create new jobs, particularly r d accounts for 22. 6 , more than three times as large as the jobs that were created in the purely manufacturing sector, helping the government create new jobs a great deal. When we come to the history of the military aircraft industry in korea, we begin by assembly in the 1970s and 80s and in the 1990s we move on to the licen Licensing Industry for f16. And in the 2000s we jointly pursue helicopters and t50 training aircraft which was advanced high. And from 2001 we are exporting finished products. And as of 2017, klh unmanned planes are being developed. And we are cooperating with our friendly nations that include the United States. The military aircraft production as of 2016 stands at 3 billion compared to 2013. It increased 36. 5 , accounting for 21. 3 of the overall military industry production. When it comes to the export of the military aircraft, it stood at. 7 billion dollars accounting for 36 of the entire military export. And establishing itself as the major export item, as you can see from the slide. When it comes to finished aircraft export, it started with the kt1 that was exported to indonesia back in 2001, and we succeeded in selling t50 to thailand. And we sold an accumulated number of is 145 aircraft pieces and cumulatively, we saw a 5. 3 billion of aircraft. And this growth was driven by our experiences and the exports policy by the korean government. However, the weaknesses include the branding power that is still lacking. But that can be complimented by actively cooperating with other advanced and friendly nations such as the United States. Let me move on to how we can really promote cooperation in the aero industry between korea and the United States in four areas. First of all, aero industry cooperation needs to be actively researched to find the common areas for joint development through our concerted efforts for more close cooperation. When mr. President visited rok back in november, the two leaders of our nations agreed to actively seek ways to encourage development in stateoftheart technology and weapons system to implement this great idea, i think consult system between our two nations needs to be strengthened further. For your reference, back in 2014, the u. S. Established u. S. India dtti with india by pursuing deputy secretary and director and working level cooperating channels respectively. Dtti Agency Task Force comes under dod and the director for International Cooperation is in charge of this effort. Through this, transporter, jet Engine Technology are the areas where the two nations which is u. S. And india are actively seeking cooperation opportunities. In particular, there is an India Rapid Reaction cell within the dod, and it contributed to decreasing the roa to a whopping six weeks which is a very tangible result. So in this vein, i would like to propose that our two nation, korea and the United States come up with something similar that can rapidly improve upon our dtti between u. S. And korea and tentatively we can come up with maybe trade initiative between our two nations for military cooperation as stated. I also concur can. And through the consultation of this consult tative body, the key components for f35 fighter jet part repair center could be good candidates for actual cooperation between our two nations. During the past ten years from the 2006 to 2015, our weapon import stood at 36. 1 trillion or 33 billion, making korea stand atop when it comes to weapon purchase. We outranked even india and japan. Weapons system, we had about 22 trillion one, rather, and we created a lot of jobs. And when it comes to military industry, korea ranks tenth. Not only that, out of 100 companies, Six Companies belong in the ten 100 Largest Military companies. So the physical seller buyer relationship that was in place between our two nations, i think we need to go further and deepen our cooperation so that the basis for korea military industry can be further expanded. When last month President Trump visited korea, he emphasized the need for consolidating military industry cooperation between the two nations. I think it is in line with the president ial vision. Next item. We really got to tap into the technology that is derived from the new government last july coped with the fourth industry revolution, particularly to promote military industry. And he was identified as one of the 100 key projects. According to the kias analysis, out of 351 respondents, more than 90 replied that fourth industry of revolution should be the carry area that is applied to the military so we can make it more this platform and Service Application can be further strengthened. In particular in june, when i personally visited g. E. In cincinnati, ohio, the person in charge of products managed its an area where eastbound two nations can further cooperate on the area of realtime military aircraft engine monitoring. As you know very well, korea is a country where f16 and other fighter jets and Chinook Helicopters have been actively imported from the United States. We have a more than one thousand airplanes. Not only, that a. I. Based military Training Simulator and ioc combat system are the various areas where our two nations can further activate our cooperation. Thirdly, military tradition and the military industry should be the area where we strengthen our research network. The kiat is a government funded center and we held a joint senator with csis in 2015. I look forward to continuously working together with you with regards to the key issues for the military tradition so that we can contribute to the development of the service and the quality. And we are willing and more than willing to travel between our two nations so that we can invite various partners such as colleges and private Research Institutes so that we can lay the groundwork for further cooperation. Thats been the least i believe when it comes to the military industries between our two nation, weve really got to strengthen our cooperation in the life cycle. For instance, back in the 1990, f16 fighter jets was the major item of offset trade. And then t50 trainer now is being exported across the world. Not only that, it has been mentioned as one of the next generation candidates for the trainers for the United States, which makes it as one of the most successful cases for our bilateral cooperation. This joint effort that began 20 years ago with regard to t patchy fog 50 turned out to be a divine move and is really making huge tradition to developing rapid growth in the aero industry between our two nations. And my hats off and i would like to salute to those who are personally involved in developing and coming up with this idea 20 years ago. And i believe it should not be one of them. Because we can come up with a second, third t50 model that can be another Great Success story. The top, top, topnotch technological power and global Brand Marketing power of the United States can be coupled with the great Human Resources and cheap costs that korea has the productivity so that we can pursue joint Development Production and export which can be and should be applied vertically and horizontally. And in conclusion, during the past 60 years, our two nations pursued military tradition and military Industrial Development based on such mutual effort. Korea is now standing as one of the sixth largest trading partners. And it is quite certain, almost a forgone conclusion that it will have 1 trillion worth of trade volume this year. And it is being discussed as a good success case. Through the seminar that we are holding today, i hope and believe that down the road, maybe even for the next 30 years, we can come up with concrete ideas that can lay the Firm Groundwork for future cooperation between our two nations. Thank you so much. Thank you drrks, dr. Jang. Now in a discussion about the Aerospace Industry, i think its important we get some actual Aerospace Industry voices involved. Im going to turn next to doug gree greenelaw for his perspective. All right. Distinguished visitors and friends, thanks for the opportunity to speak on this panel with such esteemed experts on this important topic. Lockheed martin has a proud history of partnering with International Customers to create and grow Aerospace Industrial capability around the world. I loved your comments, circumstances before me about the brand power as well. Lockheeds partnership with south korean Defense Industry is a great example of how the u. S. And south korea can come together to develop platforms and capabilities that strengthen our respective Defense Industrial bases, support requirements in the republic of korea, in the u. S. And globally, and help to further bind our two countries together, ultimately enhancing allied capability. For almost 30 years, Lockheed Martin has been honored to partner with the government of south korea and korean industry in some of the most critical defense programs, most notably in Missile Defense programs like aegis, helicopters and Fighter Airplanes. Look no further than the lmk lmkii t50 partnership to see how the two allies can produce stateoftheart platforms. Allow me to tell you the story of how this came about. In the late 1980s, when the republic of Korea Air Force acquired f16 block 32 aircraft under the peace bridge program, korean industry built the center fuselages for the aircraft. The innovative threephased korean fighter program, kfp, exemplifies the cooperation that the speakers before me have discussed and enabled korea airspace industry, kia, to become a world class manufacturer of combat aircraft. In phase one, we produced the first 12 aircraft in fort worth, texas. In phase two, components for the next 36 aircraft were built in fort worth but sent to korea for assembly by kai. In phase three, the final 72 aircraft were produced under license by kai. And there was a 20 aircraft kf16 followon as well. But korea also wanted to develop design capability. And the t50 started as a project for the program. The concept initially known as the ktx2 received the go ahead for fullscale development in 1997. Lockheed martin also investigated in the fullscale development program. Not only has the f50 transformed Pilot Training within korea, providing better pilots in a shorter time for less money, the light combat version, the fa50 has reached full operational capability. Since then the t50 has seen continued success as Lockheed Martin and kai collectively promote the platform to meet customer requirements for trainer and Light Combat Aircraft around the world. Several International Customers including the philippines, indonesia, iraq and thailand have recognized the important capabilities that the t50 and the fa50 bring to their respective militaries and have decided to procure the platform. Kai and Lockheed Martin are excited to deliver this capability to these customers and others for decades to come. This is an example of what tommy ross described in the last panel, creating capability in southeast asia. The t50 partnership between lm and ii is an excellent example of how and why u. S. Rok cooperation in the Aerospace Industry can yield significant benefits for both of our countries and serve our collective interests as well as support allied capability. Again, we greatly value the opportunity to cooperate with republic of korea and with korean industry to meet the korean u. S. And global needs for the best Global Defense products. And thank you for opportunity to speak today. Thank you, doug. Mr. Yi, i would appreciate your thoughts next. Translator thank you. I am with kai, and its a great honor for he to be sitting here with the very distinguished panelist members, and also to be in attendance of this great conference. As to the development of t50, the history of it and the continuing cooperation with the u. S. And korea, i think its great. I think we have set a great example, and because this has been a success story, we are able to boast with great pride the success we have had. And Going Forward, we certainly hope the same or even better relationship between the two allies. And i will do my very best in this regard. Thank you. At least a few minutes to give some opening thoughts as general from dapa. Translator i am working as director general of Defense IndustryPromotion Bureau at dapa. This is actually my third conference, and after the discussion, i thought you would ask me questions instead of me making a comment. But actually now that ive been asked to make a comment, i will do so. A lot of what i actually wanted to say today have already been spoken of by these very distinguished panelist members, and also from the keynote speeches and from other previous sessions. So just what i wanted to speak about have been spoken of today. And i agree with these panelist members and keynote speeches. Based on that, ill make some few remarks. As to koreas Aerospace Industry, i think our dr. Jang was very eloquent and precise and specific in the Development History of our industry from a nation of a participant in manufacturing, assembling, and now a participant in innovative processes, all these would not have been possible without the collaboration and cooperation with my our strongest ally, the u. S. And having said that, based on our history together, i believe we can move Forward Together as well. As to our policy in korea, Defense Industry is about openness and also competition. We want to have Global Competitiveness. And the Global Competitiveness does not have to come within korea alone. It would also come from outside. And by having joint forces or jointly proceeding in the global Defense Industry together, i believe we could have more of an effect in the global industry. When it comes to Defense Industry, there has to be an ecosystem that is available for the corporations within korea to more actively involve themselves in the Defense Industry activities. We want to have an ecosystem where they would prosper by participating, and also the research and development for our military, we do not want to limit the research and development to the ministry of defense alone now. And we would like to have a more of an open platform. And we have Many Companies who are participating in the Defense Industry, but these are very Small Scale Company for the most part. And we need to find ways to protect these companies. Also, we need to find a way to further expend our export market when it comes to the Defense Industry. So by pursuing these different approaches for a common goal, we would like to see a more effective and enhanced Defense Industry. And as many participants have spoken of already today, there are some suggestions that i have for the cooperation between korea and the u. S. We with also of course have had a long history together. But i believe our relationship could be better. We could have a winwin system where we would benefit from our continued alliance and relationship. And there are certain areas that we would have comparative advantage in korea. And by finding areas where korea can be an addition to the effectiveness of the u. S. Industry, for example, advanced Pilot Training aircraft and other training areas. I believe korea can do can be an addition to the u. S. s effectiveness and also there are offset programs most of which actually comes from the u. S. But i believe we need to find a way to more effective utilize the offset program so that its not the mere second thought, but it actually could be something that is playing a vital role with the u. S. And also, how about some joint marketing and joint manufacturing. Maybe we could go Forward Together to other export markets. T50 sets a great example. As spoken of already, kai and Lockheed Martin have jointly developed the aircrafts. And they are currently being exported to many countries. And also many discussions and negotiations are under way already. So this was a winwin situation for both Lockheed Martin and kai. And that goes further and beyond for our two allies. And as you know already, apt business, we are jointly participati participating. If woe were to be selected as the apt contractor for the u. S. For 2018, i think this would be a great opportunity for us to event further enhance our relationship. There are more opportunities Going Forward that we can explore together. And there should be some sort of a cooperative body between the two nations. I know we have spoken of it. Already many times. And as to the koreas development, i know there are certain concerns about the technology that are being leaked from u. S. To korea to a third nation. This is something that we could also further discuss so that we have better protection of Intelligent Properties and technologies. And im grateful for this opportunity to be at csis for this very great conference. I think the timing is good. I think we have certain things on our plates that we could discuss together. And i believe we have many a fruitful thought from todays discussions. A couple of examples of success that are already out there in the t50 and the fa50 aircraft that are being exported and addressing comment that tommy ross made in the last panel about the u. S. And rok cooperating to promote security among other u. S. Partners in southeast asia. And obviously there is the opportunity and the tx program that is there as well. And we may hear more about that in the next few months. Id be interested in the panels thoughts. It was referenced i think at the very beginning of the day that when President Trump was in korea, there was discussion about many potential new arms deals between the two nations that are pending that may be in the pipeline to be approved in the next few years, and certainly during the term of this administration. So id be interested in the panels thoughts as we look in that context about potential new deals that could be large. How would you in your ideal world want to see the industry to industry, the industrial cooperation on these new programs work . Its obvious from dr. Jangs presentation that the korean industry has dramatically grown its capabilities and its potential to be a partner in these efforts. There are also a few areas where there is growth to be had. I would like to give everyone on the panel, anyone who chooses to comment an opportunity to talk about what they would like to see happen as these new deals are negotiated. Dr. Jang, would you like to start. Translator thank you for your great comment. Back in november, early november, i think it was the 7th when President Trump visited korea, having discussion with president moon there was a discussion for consolidating military industry cooperation between the two nations. Of course purchase of the stateoftheart weapons system is important. But how korea can be helped so it can become a development partner, which is just as important. But its most urgent on the side of korea as you know very well. It is how to cope with or tackle the north Korean Nuclear problem by acquiring military system or developing its own weapons system. Of course japan can play a certain role when it comes to that type of missile during the crisis. And the crisis with china, f35 osprey was rapidly purchased by japan. Of course korea may follow suit when it comes to this urgent issues. The stateoftheart weapons system of the United States is something that the korea will be very willing and actively purchasing. Nevertheless, korea is in a place it needs to develop its own capability. For instance, in indigenous weapons system. Even in those area, in various aspects, technological support and cooperation from the United States is much needed. In that regard, if the u. S. Can be proactive in those areas that are stated, with reference to the u. S. India dtti, the core was that indias military industry can be strengthened. Likewise, if same consideration can be made to sustain security environment in and over the Korean Peninsula by the United States providing help to strengthen the military infrastructure for the rok, i think that needs to be actively considered. Also, for the export area. According to a recent crs research output, the u. S. Is the largest exporter, but it goes largely to the middle east which i accounts for more than 40 . By contrast, korea has some strength in the asia market, accounts for less than 20 . In that area, in that market, if the two nations not only peership, but also in other areas if we could cooperate in technological and systems development, i think it could create synergies and winwin situation for our two nations. Joint Development Production and export can be ascertained. Like we discussed two years ago, as we discussed when we held a seminar, maybe that kind of track should actively be explored. That concludes my remarks. I wanted to expand on the question a little bit and kind of expand it beyond just the militarytomilitary relationship. In the u. S. And for the u. S. Defense department, of course its the civilian commercial industry has been a critical component of expanding capabilities. And, in fact, more and more of the newest important developments are being researched and financed and deployed in commercial industry. And then theyre an important component even of the defense structures. And korea certainly has a very rich indigenous capability beyond the defense sector. So its these kinds of developments that could be that could really round out the relationship even in the militarytomilitary technology relationship. That its easier for the commercial spread in the region or the ability to use Artificial Intelligence in all sorts of Weapons Systems as well as beyond. And then even a capability like blockchain that may be able to for example is already being used in china to promote better, cheaper logistics in the commercial industry. Korean and u. S. Industry r and, d capacity could Work Together through programs like murray to round out the capabilities beyond just whats happening in the defense sector. And i want to commend what general o said previously about joint marketing which is less costly than manufacturing. But clearly the ability to Work Together beyond because were in such different parts of the world and for are cultural and old relationship and geographic ties that can play a really Important Role and will allow u. S. Government and u. S. Industry to see more readily the great benefit that comes with the korean relationship. I think we just have to think about it beyond what weve seen traditionally is the defense to defense capability. Thanks for the question. Its a really good one. You know, were all in on cooperation with korea to promote partnerships from Fighter Airplanes to training airplanes to helicopters to ship building. In fact were working some bids in the world where were leveraging korean ship building capabilities because theyre simply the best in the world. If you allow industry to work with as much flexibility as possible, well creatively find it best solutions. So general oh, you mentioned improving the offset program. For are models such as in australia that have moved away from offsets per se in promotion of industrial collaboration. This allows partnerships to promote both countries and we would encourage that. Im struck that dr. John mentioned the ddti with india a couple of times. Your stand happens to cover india and korea. And Lockheed Martins been a key player. Do you have similarities you could see . Yeah. I mean ddti i think in many ways has been a success and i think just the tone that it sets for alignment between the two governments is greatly enabling for the two systems to Work Together. Now i would say the indian bureaucracy and the u. S. Bureaucracy in terms of how they do acquisitions are fairly different. Whereas in korea i think theyre much more sim rr. So i would welcome a program like ddti in korea and think we could be more successful there than india and i would characterize if itdia as successful. I want to see if theres questions from the audience. We have mikes available if anyone would raise their hand and offer a question. Here. Just briefly state your aff affiliation. Teal group. Thanks, andrew and to the panel. It seems to me that an Aerospace Industry is composed of one the platform and the other is subcomants and technologies in the broader supply chain. Im intrigued by the rise of koreas industry because on the commercial side its all about the subcomponents and the technologies whereas military is heavily platform centric. So for are two other areas of the a quadrant that present themselves for possibilities. Or segmented military components and technologies in the supply chain. I was wondering if the panel saw specific opportunities in either of those quadrants. I dont know if you have thoughts about that issue of the supply chain and the work that could be done there. Translator with it comes to kie, as you stated in the Commercial Area subcomponent manufacturing is where we evolve and expand our Business Scope by risk sharing and what not. Thats something were actively doing sole sunearching about th. And when it comes to the supply chain in the domain of the military industry Equipment Development and Competitive Edge is the area that we pursue through system entegration. That capability is a must. Thats the approach that we bring to develop supply chain. That is our increasing understanding these days. Pl partickialerly in our belonging to enhance our competitiveness we needed to define and develop new areas and acquire them and along the way supply chain, how can it be established, pursued for our cooperation . That was the area where we had growing understanding. I think it will be handy for it our Business Opportunity and out reaches down the road. Thank you very much. Related to that, i would like to add one more comment. Just as you stated the military aircraft has been developed centering on the platform indeed when it comes to the core components such as navigation and what not. Its the still the area where korea doesnt have enough technology to pursue indigenously. We are fully aware of the shortage. So the military small end, a Medium Sized Companies need to be promoted and catapult them to the global Ranking Companies and government is going to exert even greater effort. And major o is in charge of that effort and thats direction were putting a lot of resources in thinking into and towards that end. Small and medium sized partners need to be promoted for their capability through our joint efforts between our two nations for developing programs. For instance how to improve on the free offset, which is what we call previously. It was only one unit in the industry that was the area of offset industry. So the scale or other dimensions were quite limited in the past. But if you learn from the case of israel or turkey by adopting preor free offset so that small and medium size Korean Companies can become values in the value chain and g 2 e is an area where were really proactive or want to be by securing or identifying good quality small and medium sized quantities and supporting them and if this effort can be positively appreciated by it u. S. Side. So we can acknowledge the mutual y beneficial areas so it can exceed the korean market, that will be appreciated. Thank you so much. Thank you for that question. Thats going to finish off that Panel Discussion and i want to take a moment to thank all of our partners in this conference, includinging dapa, kai. The end of this session is going to conclude the pubric part of this conference. For those of you who are continuing on with some of the private events that follow, that will be down stairs on the concourse level but for now, please join me in thanking this panel for an excellent discussion. 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