Korean Air to sign $32.7 bn in aircraft deals with Boeing, GE Aerospace

Seoul, March 22 (IANS) Korean Air Lines, South Korea's national carrier, will acquire some 20 aircraft from US Boeing and procure spare engines from GE Aerospace, in a combined deal worth US$32.7 billion, Seoul's industry ministry said.

A pre-signing ceremony took place at the Department of Commerce in Washington, attended by Cho Won-tae, chairman of Hanjin Group, Korean Air's parent firm; Kelly Ortberg, Boeing's president and CEO; and Russell Stokes, president and CEO of GE Aerospace Commercial Engines and Services.

Also present at the event were South Korean Industry Minister Ahn Duk-geun and U.S. Secretary of Commerce Howard Lutnick, reports Yonhap news agency.

Under the agreement, Korean Air will acquire 20 Boeing 777-9 and 20 Boeing 787-10 aircraft by 2033, with an option to purchase an additional 10 aircraft. The two companies agreed to swiftly proceed with the deal, valued at $24.9 billion.

Korean Air and GE Aerospace agreed to a contract worth $7.8 billion for the procurement of eight space engines and engine maintenance services.

At the ceremony, Ahn expressed hope for the agreement to help further facilitate broad exchanges between the allies, pledging that South Korea will actively support cooperation between industries in both countries.

Ahn is visiting Washington for talks with top U.S. officials, including Lutnick and Energy Secretary Chris Wright, to discuss U.S. tariffs and its placement of South Korea on the "sensitive countries" list, among other issues.

In other developments, the government said it will work to devise support measures for the critical minerals recycling industry as part of efforts to stabilise the supply chain for advanced industries.

"We are very concerned about supply chain risks as global economic uncertainties are high due to the protectionist policies of the new U.S. administration, including the tariff scheme, and China's export controls on critical minerals," acting President Choi Sang-mok said during a meeting with related industry officials, according to the finance ministry. The meeting took place at a rechargeable battery recycling firm in North Jeolla Province.

—IANS

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