‘FMS Status Upgrade May Not Reduce Defense Costs’
The nation’s elevated status in the U.S. Foreign Military Sales (FMS) program may not necessarily reduce the cost of arms bought from the United States.
The Defense Acquisition Program Administration (DAPA) told reporters that putting Korea on the same footing as other major U.S. allies would cut administrative costs by two-point-eight million dollars a year compared to a recent five-year period.
However, it pointed out that, due to a revision of the U.S. Arms Export Control Act, training costs paid at the time of a purchasing contract would fluctuate depending on the economic conditions of the importing country. Therefore, in some cases, a buyer's total acquisition cost could rise regardless of its FMS status.
DAPA's statement deviated from its previous analysis that the upgrade will not only ease the U.S. congressional review process but also lower arms acquisition costs.
Last month, the U.S. elevated Korea's status in the FMS to the same level as its allies in the North Atlantic Treaty Organization plus Japan, Australia and New Zealand.
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