Korea revises supplier code system to boost defense bids in US

Lee Yong-cheol, minister of the Defense Acquisition Program Administration (DAPA), attends a seminar on military procurement at a hotel in Seoul, Friday. Yonhap

Korea has revised the North Atlantic Treaty Organization (NATO)-issued identification code system for its arms equipment suppliers in a bid to help boost defense exports to the United States, the arms agency said Friday.

After consultations with relevant NATO authorities, Korean suppliers can now receive a NATO commercial and government entity (NCAGE) code for each of their production facilities, the Defense Acquisition Program Administration (DAPA) said in a release.

An NCAGE code is a five-character number issued to non-NATO businesses or government agencies that supply goods or services to NATO-member defense agencies or the U.S. federal government.

Previously, NCAGE codes were issued per business registration number. This often created administrative confusion for companies operating multiple factories or warehouses when bidding for international contracts.

Korea has been stepping up policy efforts to better meet NATO standardization rules to help local defense companies expand their entry into the U.S. defense procurement market, amid growing shipbuilding cooperation between Seoul and Washington.