South Korea’s LIG Nex1 wins $3.2B arms deal with Saudi Arabia

Jeong Hyeon-hwan & Kim Tae-gyu, UPI News Korea
·2 min read
UPI
LIG Nex1’s midrange surface-to-air missile system is displayed at the World Defense Show in Riyadh, Saudi Arabia, on Monday. Photo courtesy of LIG Nex1

SEOUL, Feb. 7 (UPI) -- South Korea's defense ministry said LIG Nex1 has won a $3.2 billion contract to export midrange surface-to-air missiles to Saudi Arabia.

Under the deal signed late last year, LIG Nex1 is scheduled to ship its Cheongung-II missiles (Cheongung translates to "Heaven's bow" in Korean) to the Middle East nation.

The agreement had been kept a secret until South Korea's defense ministry opted to disclose the terms Tuesday after a meeting with its Saudi Arabian counterpart.

The Cheongung-II is designed to intercept targets at an altitude of up to 9.3 miles above ground against threats posed by artillery and aircraft attacks.

The hit-to-kill missiles represent the middle-tier option among South Korea's three-tier aerial and missile defense system, as the country is still technically at war with North Korea.

The LIG Nex1 deal follows its contract with the United Arab Emirates in early 2022 for missile sales worth $3.5 billion.

Saudi Arabia is believed to be trying to strengthen its air defense system against provocations by Yemen's Houthi rebels and their offensive using rockets, ballistic missiles and drones.

"The export value is almost double our 2022 sales, which amounted to $1.7 billion," an LIG Nex1 official told UPI News Korea.

The official wouldn't elaborate on the details of the deal, citing security concerns.

With the two countries signing a memorandum of understanding on Sunday for bilateral military cooperation, South Korea expects more deals with Saudi Arabia to follow.

Under the MOU, signed during the World Defense Show in Riyadh, Saudi Arabia, the countries are to establish a joint committee for carrying out research and development in defense.