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Australia, S Korea sign $680 mn defence deal as Morrison, Moon Jae-In meet

Australia and South Korea signed a $680 million defence deal Monday as South Korean President Moon Jae-in became the first foreign leader to visit Australia since the pandemic began.

Topics
Australia | South Korea | Moon Jae-in

AP  |  Canberra 

South Korean President Moon Jae-In
South Korean President Moon Jae-In (Photo: Twitter/@moonriver365)

and signed a $680 million defence deal Monday as South Korean President became the first foreign leader to visit since the pandemic began.

Worth about 1 billion Australian dollars, the deal will see South Korean defence company Hanwha provide the Australian army with artillery weapons, supply vehicles and radars.

It's the largest defence contract struck between and an Asian nation, and comes at a time of heightened tensions between Australia and China. Australia recently announced a deal to build nuclear-powered submarines in a partnership with the U.S. and Britain a move that China has strongly condemned.

Moon met with Australian Prime Minister Scott Morrison during his visit, and the two leaders agreed to upgrade the formal ties between their nations to a comprehensive strategic partnership."

The leaders also said 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 the new defence contract would create about 300 jobs in Australia, where a division of Hanwha operates.

The contract that we have signed today, I think, speaks volumes about what we believe are the capabilities of the Korean defence industry," Morrison said.

Moon said had similar values to Australia when it came to its geopolitical outlook, but also that its relationship with China was important, particularly when it came to pursuing peace with North Korea.

Therefore, is focused on the steadfast alliance with the US and also with China," Moon said. We want a harmonised relationship.

Australian Defence Minister Peter Dutton said his government was committed to keeping the region safe and 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.

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.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Mon, December 13 2021. 08:55 IST
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