South Korea chose on Monday Korea Aerospace Industries Ltd., which expects to partner Lockheed Martin Corp., to develop a midlevel fighter jet that will cost around 8.7 trillion won ($7.88 billion).
The Defense Acquisition Program Administration (DAPA) also confirmed its decision to upgrade South Korea's Patriot missile system, with Raytheon Co. chosen to upgrade the launch systems. PAC-3 missiles will be bought from the United States.
South Korea has been trying to bolster its arsenal in the face of a missile threat from North Korea.