Aerospace and defense giant Lockheed Martin received US government approval to go ahead with F-16 upgrade plans for South Korea.
Reuters reported that the Pentagon has given Lockheed Martin the OK to proceed with a $2.5 billion deal with the East Asian nation that involves upgrades in computers, radars, and other F-16 fighter jet-related equipment.
The deal between the South Korean government and Lockheed Martin came after a previous F-16 upgrade project with Europe’s largest defense company, BAE Systems, failed. BAE Systems faced higher costs than the proposed budget for the project, leading South Korea to request the US government to cancel the deal with BAE’s US division.
Lockheed Martin is the original manufacturer of the F-16 fighter jets. South Korea’s previous deal with BAE Systems was the first time F-16 upgrades were to be carried out by a company other than Lockheed Martin.
South Korea does seem hesitant of the deal despite the US approval. As Defense World mentions, South Korea was originally planning to pay no higher than $1.5 billion, 40 percent less than the current Lockheed Martin deal.
Even more surprising is the fact that the current deal is $800 million more than the canceled BAE deal was estimated to cost according to Defense News .
The Korean Herald predicts that the South Korean government will face “strong criticism” due to the ironic switch from a cheaper deal, which was cancelled due to high costs, to an even more expensive deal with Lockheed Martin. The Korean Herald expects the government to be grilled for “wasting taxpayers’ money.”
Despite Washington’s green light, the current deal is still not official.
The Korean Times also mentioned that the current controversial cost estimates are still to be finalized between South Korea and the US.
“The total will be finalized through negotiations between the Korean and US governments,” the Korean Times quoted Seoul’s Defense Acquisition Program Administration (DAPA) spokesman as saying. “Although I cannot unveil a specific amount now, the two sides are in talks to reduce the upgrade cost.”
The United States Congress will have 30 days to either approve or stop the deal, but a decision to stop it is highly unlikely.
If the deal does go through, Lockheed Martin will upgrade 136 South Korean F-16 fighter jets with improved weapons, radars, and computer equipment. Seoul will also receive F-16 tactical support services from the US.
In addition to the F-16 upgrades, the Washington Business Journal says South Korea also plans to purchase missile defense systems from Lockheed Martin.
[Photo by Chung Sung-Jun/Getty Images]
