Australia, South Korea sign $1 billion historic defense agreement

Canberra: Australia has formalised a $1 billion defence agreement with South Korea Monday— the first ever major military deal to be done with an Asian nation. 

Australian Prime Minister Scott Morrison and South Korean President Moon Jae-in have signed a defense deal worth one billion Australian dollars as the two countries mark 60 years of diplomatic relations.

The agreement was signed during South Korean President Moon Jae-in’s four-day visit to Australia—boosting Seoul's efforts to grow its military exports.  

The two leaders agreed to upgrade the formal ties between South Korea and Australia to a "comprehensive strategic partnership". 

Both countries have signed a nearly $700 million defense deal.

Following the agreement, South Korean defense company Hanwha will provide the Australian army with equipment like artillery weapons, supply vehicles and radars.

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

Moreover, the new defense contract is expected to create close to 300 jobs in Australia, where a division of Hanwha operates.  

"We need the constructive efforts of China to enable denuclearization of DPRK (North Korea)," Moon said, referring to Beijing’s role in promoting peace in the region. 

During his visit, the two countries signed a series of technology and military cooperation agreements.

Moon is the first international leader to visit Australia after the country eased its pandemic-induced border restrictions.