Australia and South Korea yesterday signed a US$720 million defense deal as South Korean President Moon Jae-in became the first foreign leader to visit Australia since the COVID-19 pandemic began.
Under the deal, South Korean defense contractor Hanwha is to provide the Australian army with artillery weapons, supply vehicles and radars.
It is the largest defense contract struck between Australia and an Asian nation, and comes at a time of heightened tensions between Australia and China.
Photo: Reuters
Australia recently announced a deal to build nuclear-powered submarines in a partnership with the US and Britain, a move that China strongly condemned.
Moon met with Australian Prime Minister Scott Morrison on his visit, and the two leaders agreed to upgrade formal ties between their nations to a “comprehensive strategic partnership.”
The leaders also said that they would work together on developing “clean energy” technologies, including hydrogen, and on facilitating the supply of critical minerals, which Australia has in abundance.
Morrison said that the new defense contract would create about 300 jobs in Australia, where Hanwha operates one of its divisions.
“The contract that we have signed today, I think, speaks volumes about what we believe are the capabilities of the [South] Korean defense industry,” Morrison said.
South Korea has similar values to Australia when it comes to its geopolitical outlook, Moon said, adding that the two nations view their relationship with China as important.
Moon said that China is especially important as South Korea pursues peace with North Korea.
“Therefore, South Korea is focused on a steadfast alliance with the US and also with China,” Moon said. “We want a harmonized relationship.”
Canberra is committed to keeping the region safe, Australian Minister of Defence Peter Dutton said, adding that the new contract would help modernize the Australian army.
“The prime ability of the new vehicles is to fire and move quickly, avoiding enemy counterattack,” Dutton said.
“This project will mean a significant increase in the level of firepower and security for Australian artillery capability,” Dutton added.
South Korea is Australia’s fourth-largest trading partner and fourth-largest export market under a free-trade agreement that has been in force since 2014.
This year marks the 60th anniversary of diplomatic ties between the two countries.
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