LIG Nex1 likely to ink $2.65 bn missile interception deal with Iraq next week
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The size of the deal is reportedly worth $2.65 billion.
According to foreign media reports and sources from the defense industry on Wednesday, LIG Nex1 is expected to sign a deal with Iraq as early as next week to export eight batteries of Cheongung-II.
Defense Arabic reported that “Iraq will purchase Korea‘s Cheongung-II for $2.65 billion,” adding that “Iraq sent a delegation to Korea in March 2024 to explore air defense options, including anti-aircraft weapons.”
High-ranking officials from the Iraqi government and military, such as Lt. Gen. Samir Zaki Hussein Al-Maliki, commander of Iraq’s Army Aviation Command, and Iraqi Defense Minister Thabet Muhammad Al-Abasi, visited Korea in March to meet with their Korean military counterparts and defense industry officials.
Korea and Iraq were close to signing the Cheongung-II export contract in May but negotiations reportedly hit a snag during the process.
Industry insiders noted that negotiations picked up steam in August and a tentative agreement for the final contract has been reached.
The deal comes as tensions rise in the Middle East, particularly with the ongoing military conflict between Israel and Hamas escalating.
As major military and economic powers in the Middle East, including the United Arab Emirates (UAE) and Saudi Arabia, continue to adopt Korean air defense systems to protect their airspace, expectations are rising for further demand.
Cheongung-II is a medium-range surface-to-air interception weapon system developed with indigenous Korean technology to counter enemy ballistic missiles and aircraft attacks.
It is also a core component of Korea’s missile defense system (KAMD), which is based on the concept of “multi-layered defense.”
Development began in 2012 under the direction of the Agency for Defense Development (ADD), with LIG Nex1 developing the launch vehicle.
Hanwha Systems Co. and Hanwha Aerospace Co. also developed the multifunctional radar and launcher, respectively.
Each Cheongung-II launcher can carry eight interceptor missiles. It employs a cold launch method, where the missile is ejected over 10 meters using gas pressure before igniting in mid-air.
Cheongung-II has an interception altitude of approximately 15 to 40 kilometers, and the cost per interceptor missile is reported to be less than half that of the U.S.-made Patriot system.
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