LIG Nex1 clinches W3.7tr deal to export missile defense system to Iraq

Image of LIG Nex1’s medium-range surface-to-air missile Cheongung-II (LIG Nex1)

South Korea’s defense firm LIG Nex1 said Friday it has signed a 3.7 trillion won ($2.78 billion) deal with Iraq’s defense ministry to export its medium-range surface-to-air missile defense system Cheongung-II.

This is the third export contract worth over 1 trillion won that LIG Nex1 has clinched, following those with the United Arab Emirates and Saudi Arabia.

Cheongung-II includes four launch vehicles with eight tubes, multi-function radar and traffic management command. It will be produced by LIG Nex1, along with Hanwha Systems and Hanwha Aerospace – subsidiaries of the nation’s energy-to-defense conglomerate Hanwha Group.

The state-of-the-art missile system, which started mass production in 2018, boasts technologies designed to intercept aircraft and missiles, counter multiple targets, control guided missiles to deliver munitions rapidly and operate side jets with continuous thrust control, according to the company.

LIG Nex1 expects Cheongung-II to further boost long-range high-altitude missile defense systems exports to Iraq, the United Arab Emirates and Saudi Arabia.

The company added the South Korean government’s unwavering support was a key factor in securing the deal, noting that guided weapon system exports are particularly challenging for latecomer countries in the defense industry.

“We will continue to make efforts to make this deal open new opportunities for Korea’s small and medium-sized defense companies in global markets as well as raise the profile of the nation’s defense industry,” stated LIG Nex1 Shin Ick-hyun.

The defense firm operates five overseas branches in the US, United Arab Emirates, Saudi Arabia, Colombia and Indonesia.

By Byun Hye-jin(hyejin2@heraldcorp.com)