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October 7, 2002
The US has about 80 percent of the South Korean market for military weapons, but a new policy by South Korea demands that contractors agree to transfer all technology for weapons being imported to South Korean companies. The Pentagon has balked, saying it will decide what technology to give away and what to keep secret, and will not be bullied. The new policy has had no effect so far as the US has won two major weapons deals (KDX destroyers and F-15K fighters) and is certain to win a contract to provide P-3 maritime patrol aircraft. Future competitions, however, could cause a confrontation over technology transfer issues.--Stephen V Cole
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