Hanwha Aerospace Co. secured a 940 billion won ($730 million) contract to produce missile system components for LIG Nex1 Co., strengthening its position in South Korea’s growing defense sector.
The deal, announced Tuesday, covers launchers and internal parts for the Cheongung-II surface-to-air missile system, which South Korea developed as an alternative to the U.S. Patriot system. The contract represents about 10% of Hanwha Aerospace’s recent sales.
The order follows Saudi Arabia’s purchase of the weapon system in February for $3.2 billion, marking South Korea’s largest-ever defense export deal. The Saudi contract emerged during high-level defense talks between the two countries.
Hanwha Aerospace will work alongside its affiliate Hanwha Systems, which produces the system’s radar components. The Cheongung-II, developed by South Korea’s defense agency since 2012, received combat certification in 2017 and entered production the following year.
The system is designed to intercept both aircraft and ballistic missiles at medium range and altitude. Its successful export to Saudi Arabia signals South Korea’s growing influence in the global arms market, where it competes with established Western defense contractors.
