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South Korea, UAE Ink $35B Industrial Defense Deal

South Korea and the UAE have signed a defense industry cooperation memorandum of understanding valued at more than $35 billion, part of a broader $65-billion bilateral cooperation package.

Presidential Chief of Staff Kang Hoon-sik announced the agreement at Incheon International Airport after returning from Abu Dhabi as special envoy for strategic economic cooperation, according to Yonhap News Agency.

Seoul’s Defense Acquisition Program Administration signed the framework with the Middle Eastern country’s state-owned defense conglomerate, EDGE Group.

The deal establishes a framework covering the full industry cycle, from design and development to training and sustainment, moving beyond a traditional buyer-seller model.

Kang said the package spans integrated air defense systems, advanced airpower, and maritime capabilities, but declined to provide further details, citing security concerns.

Meanwhile, the two governments also agreed to revamp their existing $30-billion investment framework to reflect expanded cooperation in defense, artificial intelligence, nuclear energy, and other sectors.

In the nuclear field, both sides committed to deepen collaboration across the project lifecycle, building on their experience at the Barakah Nuclear Power Plant, including fuel supply, maintenance, and the integration of AI into the facility’s operations.

Potential KF-21 Jet Sale

The partnership comes amid the UAE’s ongoing negotiations with South Korea for the potential sale of the latter’s homegrown KF-21 Boramae combat aircraft.

Both countries in 2025 agreed on “comprehensive cooperation” over the development of the jet, which is slated to enter service with the Republic of Korea Air Force by the 2030s.

Part of that collaboration is a flight test conducted between Abu Dhabi and Seoul defense officials last August at the Sacheon Air Base in Gyeongsangnam-do.

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