Analyzing the Effectiveness of the Korea-U.S. Supply Chain Security Arrangement in Strengthening the South Korean Defense Industry Supply Chain

In November 2023, the signing of the South Korea-U.S. Security of Supply Arrangement (SOSA) marked a critical turning point in an era of increasing supply chain risks. While this agreement offers substantial benefits to the stakeholders involved, there is a lack of quantitative research on its effects. This study analyzes the impact of such supply agreements on supply chain efficiency using a mathematical model. The aim is to provide insights into how the agreement mitigates risks and enhances the profitability of participants in an uncertain supply chain environment. The analysis reveals that in a supply chain with two participants, the existence of a supply agreement leads to higher supply chain profits compared to when no such agreement is in place. The f indings of this study are expected to be useful for anal yzing the effects of various agreements related to supply chains.