South Korea's LIG Nex1 wins $2.8 bln Iraq deal to export missile systems (updated)

LIG Defense & Aerospace

20/09/2024 01:15

(Adds share move, paragraph 4; analyst comment, paragraph 5)
    By Joyce Lee
       SEOUL, Sept 20 (Reuters) - South Korea's LIG Nex1
 079550.KS  said on Friday it won a 3.71 trillion won ($2.8
billion) order from Iraq to export mid-range surface-to-air
missile defence systems. 
    The defence company did not give any other details of the
contract in a regulatory filing, citing confidentiality. 
    The news follows LIG Nex1 winning a $3.2 billion deal to
export 10 batteries of the missile systems, called M-SAM II or
Cheongung II, to Saudi Arabia, according to South Korea's
defence ministry in February.  
    Shares in LIG Nex1 rose 3.6% in early morning trade, versus
the wider market's  .KS11  0.9% increase. 
        "This makes four countries that will operate the
Cheongung II system, after South Korea, the UAE and Saudi
Arabia," said Jeong Dong-ik, an analyst at KB Securities, adding
the deal lifts the mid-range missile system's status as one of
South Korea's major defence export items. 
  
    South Korea has ramped up global defence exports, as
Russia's invasion of Ukraine opened the door to sign large-scale
contracts from Europe, the Middle East and Asia. 
    The country aims to become the world's fourth-largest arms
exporter by 2027. 
($1 = 1,326.2200 won)

 (Reporting by Joyce Lee; Editing by Jacqueline Wong, Ed Davies)
 ((joyce.lee@tr.com;))