Home ›› 14 Dec 2021 ›› World Biz
Australia signed a A$1 billion ($716.5 million) defence deal with South Korea on Monday, boosting Seoul’s efforts to grow its military exports.
Under the terms of the deal, South Korean defence company Hanwha Corp will build 30 self-propelled howitzers and 15 armoured ammunition resupply vehicles for Australia.
“It’s an important further chapter in the defence industry story for Australia as we continue to build our sovereign capability and (South) Korea is an important partner in that journey,” Australian Prime Minister Scott Morrison told reporters in Canberra.
The deal positions Hanwha as a frontrunner for Australia’s planned A$30 billion contract to build infantry fighting vehicles for its army.
Shares in Hanwha were up 3 per cent following the announcement.
While the defence deal is the headline of South Korean President Moon Jae-in’s four-day trip to Australia, both countries said they have also agreed to work closely to help ensure supplies of Australian critical minerals exports for South Korea’s tech sector.
Western allies have in recent months moved to reduce their dependency on China amid heightened concern about Beijing’s control over the critical minerals sector.
