By Jung Sung-ki
Staff Reporter
Samsung Thales (STC), a leading electronic defense systems maker in South Korea, has won a contract to export its military communication system to Iraq, the company announced Wednesday.
The contract marks the first time a Korean military communication system has been exported, it said in a news release. So far, the country has exported single and small communication devices, such as wireless telegraphs and tactical radios.
STC and Samsung SDS signed the contract with the Iraqi Ministry of Defense to provide the defense communication network, which includes a high-speed radio transceiver (HRT21I), to Iraq next year, according to the release.
The contract for the first phase of the project is valued at $64 million, it said. The figure exceeds the total value of exports in the field of military communication over the past decade.
The second phase contract is expected to be worth over $100 million, it said. The second phase program is to begin in 2011.
"The winning of this contract is meaningful because after delivery of the military tactical communications system, there is high potential for the additional export of system upgrades and related weapon systems, which will lead to a much higher added value than the sales of individual units," STC Vice President Chung Ki-hyun said.
The company plans to expand to markets around the world, such as Southeast Asia, the Middle East, and Central and South America, he said.
Through active market development, Korea will build a stronger reputation in the military communications domain, company officials said, expecting the country would be able to collect more than $500 million in communications exports by 2012.
STC's products for potential overseas sales include tactical communications and data link equipment, radar systems, electro-optical gear and combat systems for ships and ground vehicles.