South Korea to supply air defence systems to Iraq

South Korean defence company LIG Nex1 has said it secured a 3.71 trillion won ($2.8 billion) contract to export mid-range surface-to-air missile defence systems to Iraq.

While the company provided no additional details due to confidentiality, this deal marks a significant boost for South Korea's defence exports, Caliber.Az reports, citing foreign media.

The contract follows a previous $3.2 billion deal LIG Nex1 signed with Saudi Arabia in February to deliver 10 batteries of the same missile system, known as M-SAM II or Cheongung II. This brings the total number of countries operating the Cheongung II system to four, alongside South Korea, the UAE, and Saudi Arabia.

“This makes four countries that will operate the Cheongung II system,” said Jeong Dong-ik, an analyst at KB Securities. He highlighted that this deal reinforces the status of the mid-range missile system as a major defence export item for South Korea.

Following the announcement, shares in LIG Nex1 rose by 3.6% in early morning trading, outpacing the broader market's 0.9% increase.

South Korea’s global defence exports have been growing, particularly in response to increased demand from Europe, the Middle East, and Asia following Russia’s invasion of Ukraine. The country has set a goal to become the world's fourth-largest arms exporter by 2027.