Procurement: Breaking Brokers


January 6, 2010: South Korea has had its problems with corruption in military procurement. A study of how often, and to what extent, corruption occurs, revealed that payoffs and kickbacks are much more likely to occur when purchases are made, from a foreign civilian firm, using a broker (someone who specializes in dealing with foreign firms, and their often strange ways.) About two-thirds of South Korean purchases of military equipment from overseas suppliers are from civilian firms. The rest are government-to-government purchases, where the foreign government makes all the arrangements on their side. Thus the South Korean are going to try and do more of their purchasing via the government-to-government route. This way, there will be more safeguards (and inspectors) on both sides of the transaction.




Help Keep Us From Drying Up

We need your help! Our subscription base has slowly been dwindling.

Each month we count on your contributions. You can support us in the following ways:

  1. Make sure you spread the word about us. Two ways to do that are to like us on Facebook and follow us on Twitter.
  2. Subscribe to our daily newsletter. We’ll send the news to your email box, and you don’t have to come to the site unless you want to read columns or see photos.
  3. You can contribute to the health of StrategyPage.
Subscribe   Contribute   Close