South Korea to export $2.78B worth of anti-aircraft missile systems to Iraq

LIG Nex1 Co., South Korea's major defense firm, said Friday it has secured a 3.7 trillion-won ($2.78 billion) contract with Iraq to export its Cheongung-II medium-range surface-to-air missile defense system, Report informs via Yonhap News Agency.

The deal was made with Iraq's defense ministry, though specific financial details were withheld for security reasons, according to LIG Nex1's regulatory filing.

It is the third export contract for the Cheongung-II system, which is at the center of South Korea's missile defense strategy, designed to intercept incoming missiles and aircraft, primarily as a safeguard against threats from North Korea.

Previously, the system was sold to the United Arab Emirates and Saudi Arabia.

LIG Nex1 produces the missile and integrated system, while Hanwha Systems Co. supplies the radar, and Hanwha Aerospace Co. manufactures the launchers and vehicles.

The company expects that the deployment of the advanced technology of the Cheongung-II in the air defense networks of the three Middle Eastern countries will pave the way for further exports of long-range, high-altitude interceptors to those countries.

According to the LIG Nex1, the latest Iraqi deal was attributable to the active support of the Korean government and other related agencies and local defense firms, including the Ministry of Defense, the Defense Acquisition Program Administration and the Agency for Defense Development.

"We will continue to strive to raise the presence of the Korean defense industry and provide a stepping stone for small and medium-sized defense companies to find new growth opportunities overseas," said Shin Ick-hyun, CEO of LIG Nex1.