Australia buys army gear from S. Korea

CANBERRA－Australia signed a A$1 billion ($716.5 million) military deal with South Korea on Monday, as South Korean President Moon Jae-in became the first foreign leader to visit Australia since the pandemic began.

Under the deal, South Korean military supplier Hanwha will build 30 self-propelled howitzers and 15 armored ammunition resupply vehicles for Australia.

"It's an important further chapter in the defense industry story for Australia as we continue to build our sovereign capability and (South) Korea is an important partner in that journey," said Australian Prime Minister Scott Morrison to reporters in Canberra.

The deal positions Hanwha as a front-runner for Australia's planned A$30 billion contract to build infantry fighting vehicles for its army.

Hanwha shares rose 3 percent following the announcement.

Mineral exports

Though the military deal is the headline of Moon's trip to Australia, both countries have agreed to work closely to help ensure critical Australian mineral exports for South Korea's tech sector.

The two leaders agreed to upgrade formal ties between their nations to a "comprehensive strategic partnership".

Morrison said the new military contract would create about 300 jobs in Australia, where a division of Hanwha operates.

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

Moon said South Korea has similar values to Australia in terms of its geopolitical outlook.

"We want a harmonized relationship," Moon said.

Australian Defense Minister Peter Dutton said his government is committed to keeping the region safe and the new contract would help modernize the Australian army.

South Korea needs critical mineral supplies, having pledged to become a global battery manufacturing powerhouse by 2030.

In Beijing, Foreign Ministry spokesman Wang Wenbin accused Australia of "trying to divert attention, draw ideological lines and set up imaginary enemies in the name of democracy and freedom".

Speaking of the coming Beijing Winter Olympics, Moon said he was "not considering" snubbing the Olympics, as several Western nations have done.

Seoul's position on the Olympics "is a demonstration of the friendship between China and South Korea", Wang said on Monday.

Agencies Via Xinhua