South Korea to develop own fighter jet

South Korea on Monday selected Korea Aerospace Industries and partner Lockheed Martin for a multi-billion-dollar contract to develop 120 "indigenous" fighter jets to replace Seoul's aging fleet.

The bid from KAI and the US aerospace giant, which is subject to a screening process before being officially approved, was always seen as the favorite for the 8.6 trillion won ($7.8 billion) deal over a rival bid by civilian carrier Korean Air teamed with Airbus.

The Defense Ministry also approved a separate $1.28 billion deal to buy Patriot PAC-3 missiles and upgrade its air defense system aimed at intercepting North Korean ballistic missiles.