Australia and South Korea signed a $ 680 million defense deal on Monday after South Korean President Moon Jae-in became the first foreign dignitary to visit Australia since the pandemic began. As part of the roughly A $ 1 billion deal, South Korean defense company Hanwha will supply the Australian military with artillery weapons, supply vehicles and radars.
It is the largest defense contract between the two nations, coming at a time of rising tensions between Australia and China. Australia recently announced a pact to build nuclear submarines in an alliance with the United States and Britain, a move that China strictly condemned.
During his visit, Moon met with Australian Prime Minister Scott Morrison, and both leaders agreed to improve formal ties between their respective nations to establish a “strategic alliance.” Both dignitaries also indicated that they will work closely to develop clean technologies, including hydrogen, and to facilitate the supply of critical minerals, which are abundant in Australia.
Morrison said the new defense contract would create about 300 jobs in Australia, where a division of Hanwha operates.
Under the new agreement, both nations will reactivate the joint committee on defense cooperation to maintain a permanent dialogue on related issues.