A Good-to-Great Transaction,
G2G Contract
G2G Contract Management Office
Korea Defense Industry Trade Support Center
A Good to Great Transaction
G2G Contracts
Contents
KOTRA : What we do & KODITS
G2G Contracts and KOTRA
G2G Contract Procedures
Case Study
G2G Contract Structure
Ref.
2
What we do
The Korea Trade-Investment Promotion Agency(KOTRA) is the national
organization of Korea that Promotes trade and investment.
MAIN
FUNCTIONS
ANDROLES
Encourage SMEs to expand their Support foreign companies
business in the overseas market to invest in Korea
Perform relevant Provide business information Promote cooperation in
governmental projects collected from different countries int’l development and trade
3
The KOREA DEFENSE INDUSTRY TRADE SUPPORT CENTER(KODITS),
was established at KOTRA Headquarters to support exports of Korean Defense
Materials in Oct. 2009. KODITS is a pan-governmental center, with representatives
from national agencies including Ministry of Trade, Industry and Energy, Ministry of
National Defense, DAPA, K-SURE, etc.
Implementation of
G2G Law and Policy(Mar.2011)
Government decision to establish a center
specializing in defense exports(Sep.2009)
Establishment of G2G Contract Mgt.
KODITS(Oct.2009) Office(Jan.2016)
4
G2G Contracts and KOTRA
Government to Government Contract
Signing a Contract To export Defense Materials, On behalf of, or with
with Foreign Govt. Infrastructure, etc. Korean Companies
Under a Foreign Government’s request,
“KOTRA”, the exclusively designated G2G agency,
becomes a Contracting Party on behalf of, or, with a Korean company,
and signs a contract with a Foreign Government to export goods and services 5
G2G Contracts and KOTRA
G2G Promotion Centers
North America(1) Europe(2)
Washington(USA) Bucharest(Romania)
Bratislava(Slovakia)
Latin America(4) South East Asia(4)
Lima(Peru) Manila(Philippines)
Kuala Lumpur(Malaysia)
Santiago(Chile)
Bangkok(Thailand)
Bogota(Colombia)
Hanoi(Vietnam)
Santo Domingo(Dominican Rep.)
G2G Promotion Centers (11)
Lima, Manila, Santo Domingo, Kuala Lumpur ,
Santiago, Bogota, Washington D.C, Bangkok,
Hanoi, Bucharest, Bratislava
G2G Contracts and KOTRA
6
Why is KOTRA a contracting party
in export contracts between governments?
According to the Korean Foreign Trade Act and
the Korea Trade-Investment Promotion Agency Act,
KOTRA is empowered to negotiate and sign G2G contracts as a contract party.
Foreign Trade Act (Exclusive agency for export contracts between governments)
Note Korea Trade-Investment Promotion Agency Act (Grated the legal status of the party concerning the
export contracts of defense materials, general materials, services, etc.)
7
G2G Contracts and KOTRA
What makes G2G a Good-to-Great transaction?
Reliability Excellence Transparency Promptness
\\
Stable Procurement of Block bribery, lobbying, Saving time and
Contract excellent Korean corruption expenses
Implementation products practices
8
Globally
Expanding G2G Market
As a reliable transaction scheme, G2G market is ever expanding worldwide.
*DATA: 2023~2024 CCC FISCAL REPORT
Agencies specialized in G2G :
Note KOTRA, CCC(Canadian Commercial Corporation), DSCA(US Defense Security Cooperation Agency),
BIT(British Department for International Trade)
9
G2G Contract Items
G2G Contracts are expanding in spectrum, including both tangible and intangible
Goods and Services
1
Special-purpose vehicles, Aviationandaerospace
transportationequipment · Rescue helicopters and
·Fire trucks, ambulances, police cars accident prevention, aircrafts,
·Ships, railway vehicles, cranes, etc.
ICT Infrastructures
·E-government, communication ·Public facility construction
·Online education system, (hospitals, police stations, etc.)
intelligent transportation system, etc. ·Roads, ports, power plants, airports,
railways, subway stations, etc.
Industrial facilities Defense materials
· Steel mill, gas station, etc. ·Artillery, missiles, fighter aircrafts, etc.
G2GContract Procedure
STEP PlanningandArrangement
1
Project development
KOTRA · Korean company · Purchasing government
Sending aLetter of Intent and RFP (Request for Proposal) to KOTRA
Purchasing government
Purchasing governmentdoesn’t designate an Purchasing government designatesan
Ⓐ implementing company(Korean company)
Purchasing government Ⓑ implementing company(Korean company)
Purchasing government
7
Ⓐ Undesignated Ⓑ Designated
Implementing capability evaluation of the
Open tender process
Korean company
KOTRA KOTRA
Implementing capability evaluation Making and submitting a proposal to the
and recommending a Korean purchasinggovernment KOTRA·Korean
company KOTRA company
11
STEP 2 NegotiationandSigning
5
Negotiationof acontract
Purchasing government·KOTRA·Korean company
Signing acontract
Purchasing government·KOTRA·Korean company
STEP 3 ImplementationandReview
7
Implementation of the contract
KOTRA · Korean company · Purchasing government
8
Adjusting requests from each side
KOTRA·Korean company·Purchasing government
* The contract procedures may be altered if needed.
12
G2GContract Requirements via Parties
· Sending G2G RFP(Request for Proposal) to KOTRA
Purchasing · Proposal reviews and selection of negotiation Partners
· Contract negotiation and conclusion
Government · Fulfillment of contract obligations(payment, acquisition, etc.)
· Discovering and recommending Domestic companies
· Evaluating G2G export process through review committee
KOTRA · Conclusion of performance agreement(KOTRA-Exporting Company)
· Contract negotiation and conclusion
· Monitoring contract and adjusting buying Govt’s requests
· Writing G2G proposal
Exporting · Conclusion of performance agreement(KOTRA-Exporting Company)
Company · Contract negotiation and conclusion
· Fulfillment of contract obligations(Delivery, Warranty service etc.)
Case Study - Overall
Major Accomplishments
· Contract Implementation Rate 100%
· Rate of contracting partners reusing G2G scheme 75%
· Shortest Time Span from RFP to Contract Conclusion 2Months
Categorical Classification
12%
88% Defense
General
14
Case Study – K-9 Project between Estonia - Korea
· Contract Party : Estonian Centre for Defence Investment(ECDI) - KOTRA
* Product Support Agreement was signed separately between EDCI and Hanwha Defense
· Contract Period : 2018. 6. 26. ~ 2026. 12. 31.
* (2018) Sales Agreement (2020) 1st Amendment (2021) 2nd Amendment (2022) 3rd Amendment
· Project Schedule
Year ‘18 ‘19 ‘20 ‘21 ‘22 ‘23 ‘24 ‘25 ‘26 Total
Contract(Quantity) 12 - 6 6 12 - - - - 36
Shipment(Quantity) - - 6 6 6 6 - 6 6 36
15
G2G Contract Structure
· G2G, the ONLY viable option for fast signing and delivery
· Structure: G2G Framework Agreement(1)
1. G2G Contract for Chunmoo
2. G2G Contract for Redback
· Project Schedule
Month Tasks Department in Charge
August · Signing of G2G Framework Contract KOTRA/DAPA – ECDI – (HAS)
· Discussing technical specs and terms and conditions ECDI - HAS
· Send Letter of Intent, Request for Proposal ECDI → KOTRA
· Exporting Company Evaluation by KOTRA KOTRA Headquarters
September · Negotiate and Finalize G2G Draft KOTRA – ECDI – HAS
· Special G2G Committee Meeting KOTRA Headquarters
October · Signing of Implementation Contract KOTRA – HAS
· Signing of G2G Contract for Chunmoo KOTRA – ECDI
2026.March · Signing of G2G Contract for Redback KOTRA – ECDI 16
Contract Structure
Framework
Contract(Binding) Executing Contract(Chunmoo) Executing Contract(Redback)
• Terms and Conditions
- Signed in August 2025
- Will include an Article that • Terms and Conditions • Terms and Conditions
indicates Package - Signed in October 2025 - Signed in March 2026
Procurement • Appendix: Specifications, • Appendix: Specifications,
• Appendix: Joint Proposal etc etc
by HANWHA
17
Thank You
A Good-to-Great Transaction,
G2G Contract
(06792) 13, Heolleung-ro, Seocho-gu, Seoul, Korea
Tel +82-2-3460-7806, Fax +82-2-3460-7907
GtoG Contract Management Division
June 27, 2025
Seoul, Republic of Korea
[email protected]
[email protected]
[email protected]
[email protected]
Dear Marek Mardo and Janari Kasemets
I would first like to thank you for sharing your valuable time with Team Korea,
composed of members from DAPA, KOTRA and HAS on this Estonia project.
This letter is to inform you of the commitment of KOTRA in supporting this
CHUNMOO+REDBACK Package deal project as well as the contract structure we
have in mind.
As I emphasized during yesterday’s meeting, G2G is the ONLY viable option to
conclude a procurement contract within this year. KOTRA can make efficient all
the administrative internal procedures. Contract wise, our idea is to sign a G2G
Framework Agreement in August 2025, and underneath the Framework Contract,
we will have two separate G2G Contracts. One for Chunmoo and One for
Redback(Please refer to slide 17 of the PPT).
The Chunmoo Contract can be signed in October, and the Redback Contract no
later than March 2026.
- (August 2025) The Framework Agreement will include an Article, binding
ECDI to purchase CHUNMOO and REDBACK as a package, and on the
part of HAS, it will oblige itself on efficient delivery and best price, plus
all the benefits and services it promised in the PROPOSAL. The proposal
(06792) 13, Heolleung-ro, Seocho-gu, Seoul, Korea
Tel +82-2-3460-7806, Fax +82-2-3460-7907
GtoG Contract Management Division
will be attached to the Framework Agreement, and compose part of the
Framework Agreement. Due to shortage of time, we have not prepared a
Framework Agreement Draft, but the basic idea is to give assurance to both
sides on the signing of two G2G Contracts in the coming months. The
signing Parties for the Framework Agreement shall be decided after internal
discussions. Unlike an MOU, this Framework Agreement will be a binding
contract.
- (October 2025) The G2G Contract for CHUNMOO will be signed.
Appendix will include specifications, delivery schedule, payment schedule,
etc for CHUNMOO.
- (March 2026) The G2G Contract for REDBACK will be signed. Appendix
will include specifications, delivery schedule, payment schedule, etc for
REDBACK.
- This structure requires streamlining all the procedures on both sides. As a
first step, please be very specific in the Letter of Intent you send us so that
we can hold an evaluation committee meeting right away. I have attached
a sample underneath. You can make changes but please make sure to
indicate the products, the name of the Korean company, and the guarantee
that you are authorized to sign G2G Contracts.
With all the benefits, services and guarantees offered by HANWHA Aerospace as
promised in HANWHA’s Proposal attached in this email, I am convinced this
CHUNMOO+REDBACK PACKAGE DEAL will serve the best interests of
Estonia, and KOTRA on its part promises to make sure this Contract is
implemented to a successful end.
KOTRA, as an agency designated as the exclusive Contracting Party in G2G
Contracts, is fully committed to the success of this Project and will extend its utmost
efforts to promote cooperation between the two countries.
(06792) 13, Heolleung-ro, Seocho-gu, Seoul, Korea
Tel +82-2-3460-7806, Fax +82-2-3460-7907
GtoG Contract Management Division
Thank you for your highest consideration for Hanwha’s products, and I
would like to avail this opportunity to express my deepest respect and gratitude to
all your efforts.
Best Regards,
Sun Hee KIM
Deputy Director
G2G Trade Support Center
Korea Trade-Investment Promotion Agency(KOTRA)
Attached:
1. KOTRA’s PPT including slide note
2. HANWHA AEROSPACE PROPOSAL PPT
3. Sample of Letter of Intent
(06792) 13, Heolleung-ro, Seocho-gu, Seoul, Korea
Tel +82-2-3460-7806, Fax +82-2-3460-7907
GtoG Contract Management Division
[LOGO/TITLE of ECDI of Estonia]
[Date]
LETTER OF INTENT
Korea Trade Investment Promotion Agency
Office of President
G2G Trade Support Center
Dear President of KOTRA:
The ECDI of the Republic of Estonia would like to express its intent to procure xx
units of CHUNMOO and xx units of REDBACK from Hanwha Aerospace through
Government-to-Government procedure with KOTRA, an agency exclusively
designated by the Korean government to serve as a contracting party in G2G
Contracts.
On our part, we confirm that ECDI(hereinafter ECDI), a public company under the
Ministry of Defense of ESTONIA, pursuant to domestic laws, can act as a
contracting party on behalf of the Ministry of Defense of the Republic of Estonia,
for the above mentioned procurement project.
If you have any questions please feel free to contact this office at +…. or at …@..
Best regards,
[Date]
[NAME]
Minister/President
ECDI, Ministry of Defense, Republic of Estonia