Saudi Arabia buys Korea's Cheongung-II missiles for $3.2 billion

Korea will export 10 Cheongung-II missile defense systems to Saudi Arabia under a $3.2-billion deal announced by Seoul’s Defense Ministry on Tuesday evening.

A surface-to-air Cheongung missile developed by the Agency for Defense Development [YONHAP]

Korea will export 10 Cheongung-II missile defense systems to Saudi Arabia under a $3.2-billion deal announced by Seoul’s Defense Ministry on Tuesday evening.

According to the ministry, the contract was signed between Korean defense company LIG-Nex1, the system’s manufacturer, and the Saudi Arabian Defense Ministry in November, but had been kept confidential under the terms of the agreement.

The announcement came amid Defense Minister Shin Won-sik’s tour of the UAE, Saudi Arabia and Qatar, which began on Thursday and is scheduled to end on Wednesday.

Cheongung-II is a domestically developed medium-range surface-to-air missile (M-SAM) system designed to intercept ballistic missiles at an altitude between 15 to 40 kilometers (9.3 to 24.9 miles) from the ground.

It also known as M-SAM 2 to distinguish it from Cheongung-I, the first Korean surface-to-air missile system, from which it represents a significant upgrade.

The contract with Saudi Arabia marks the second sale of the Cheongung-II system to a Middle Eastern country.

The Cheongung II ground-to-air missile with ballistic missile interceptor capability, co-developed by LIG Nex1, Hanwha Systems and Hanwha Defense, now known as Hanwha Aerospace. [DEFENSE ACQUISITION PROGRAM ADMINISTRATION]

The United Arab Emirates (UAE) signed a contract worth 4.29 trillion won ($3.2 billion) for the Cheongung-II system in January 2022, heightening expectations of Saudi interest in the system.

The UAE deal was South Korea’s largest sale of a single weapons system for export.

At the time of President Yoon Suk Yeol’s state visit to Riyadh in October, the presidential office hinted that talks with Saudi Arabia regarding the potential sale of Korean defense systems had entered the final stage, but had declined to offer specifics.

Then-National Security Office (NSO) Deputy Director Kim Tae-hyo cited Saudi concerns over weapons intelligence leaks as the main reason for not providing more information regarding the two countries’ weapons talks.

Korean-Saudi defense industry cooperation has risen in recent years, though past deals have not been fully disclosed.

Saudi Arabia is known to have signed contracts with three Korean defense companies collectively worth 3.71 billion Saudi riyal ($989 million) in March 2022, with more contracts rumored to have been signed during Crown Prince Mohammed bin Salman’s visit to Seoul in November the same year.

Saudi Arabia was banned by the Biden administration from importing U.S. offensive weapons because of its involvement in the civil war in Yemen, driving the kingdom to pursue defense cooperation with other partners.

Washington only began considering lifting of the ban on offensive weapons sales to Riyadh in December last year, according to recent reports.

Saudi Arabia is known to have previously approached Russia for its S-400 mobile surface-to-air missile defense system, but Riyadh said it was no longer considering that option in November 2021.

Russian weapons export prospects to the kingdom declined further in the wake of the war in Ukraine, with Moscow’s potential customers driven away over fears of being sanctioned.

BY LEE HO-JEONG, MICHAEL LEE [lee.hojeong@joongang.co.kr]