Korea signed a $200 million deal to export 20 of its KT-1 trainer jets to Peru over the next four years, the state arms procurement agency said Wednesday.
The state-funded Korea Aerospace Industries (KAI) will ship four aircraft and build the remaining 16 in Peru under the government-to-government deal, the Defense Acquisition and Procurement Agency (DAPA) said in a release.
Peru has become the third country to sign an export deal following Indonesia in 2001 and Turkey in 2007.
"In light of the (KT-1) exports to Peru, (Korea) has paved the way to enter into the South American market, following Southeast Asia and Europe," DAPA chief No Dae-rae said during a signing ceremony in Peru. "We expect Korean defense contractors will expand exports to the South American market in the future."
The KT-1 is a trainer jet jointly developed by the KAI and the state-run Agency for Defense Development (ADD) for the South Korean Air Force. About 100 aircraft have been in service in the nation since 2000.
To help Peruvian firms to assemble the aircrafts in local factories, the KAI will share technology to build the single-engine, turboprop aircraft and provide marketing and training services, the DAPA said.
The KAI will also support Peruvian companies to build KT-1 simulators and develop unmanned aerial vehicles, one of the conditions that boosted the export deal in a close competition, it noted.
The signing came after Peruvian President Ollanta Humala visited Seoul in May for talks with South Korean President Lee Myung-bak to expand economic ties after a bilateral free trade agreement took effect in August last year. (Yonhap)