Australia, South Korea sign $717m defence deal

On Dec 13, 2021

Australia’s Prime Minister Scott Morrison and South Korean President Moon Jae-in have signed a $717m defence deal on Monday.

The contract was signed during a four-day visit by Moon to Canberra. The South Korean president is the first foreign leader to visit Australia since the pandemic began.

The new defence deal will see South Korean defence company Hanwha provide the Australian army with artillery weapons, supply vehicles and radars.

It is the largest defence contract struck between Australia and an Asian nation, and comes at a time of heightened tensions between Australia and China.

Australia recently announced a deal to build nuclear-powered submarines in a partnership, dubbed AUKUS, with the United States and the United Kingdom, a move that China has strongly condemned.

Morrison said, the new defence contract would create about 300 jobs in Australia, where a division of Hanwha operates.

“The contract that we have signed today, I think, speaks volumes about what we believe are the capabilities of the Korean defence industry.

“It’s an important further chapter in the defence industry story for Australia as we continue to build our sovereign capability and Korea is an important partner in that journey, both in our security arrangements, but also in the building of our sovereign capability in defence manufacturing,” he added.

Moon said South Korea had similar values to Australia when it came to its geopolitical outlook and said his Canberra visit is very important for the national interest of Korea and to promote peace and prosperity in the region.

South Korea’s relationship with China was mportant, particularly when it came to pursuing peace with North Korea.

“Therefore, South Korea is focused on the steadfast alliance with the US and also with China.

“We want a harmonised relationship,” Moon said.

Kamila/Al-Jazeera