[Exclusive] Hanwha Systems Also Final Exporter of Cheongung to UAE... Record High Amount

[Asia Economy Yang Nak-gyu, Military Specialist Reporter] Hanwha Systems and Hanwha Defense, which participated in the export of the Cheongung-II (M-SAM Block-2) to the United Arab Emirates (UAE), have also completed the final signing. Following LIG Nex1, all three defense companies involved in the Cheongung export have finalized their contracts.

On the 13th, multiple sources stated, "The UAE finalized the contract with Hanwha Systems and Hanwha Defense the day before, and an official intergovernmental export signing ceremony is scheduled soon."

The Cheongung-II battery consists of a fire control center, a multifunction radar, and three launcher vehicles. The export contract for Cheongung-II to the UAE amounts to 4 trillion KRW. Among this, Hanwha Systems, which produces the multifunction radar, accounts for an export volume of 1.2 trillion KRW. This is the largest single radar export amount. Considering the multifunction radar’s operation, maintenance, and repair (MRO), the export value is expected to exceed 1.6 trillion KRW.

Hanwha Defense, which manufactures the launchers, reportedly faced difficulties in negotiations over the initial development cost (NRE) in the UAE. Hanwha Defense demanded corresponding incentives as it developed launchers customized for the Middle East region thanks to the UAE. However, a dramatic negotiation was concluded on the 12th, leading to the final signing simultaneously with Hanwha Systems.

Cheongung-II is a domestically developed medium-range, medium-altitude surface-to-air interception system designed to simultaneously respond to ballistic missile and aircraft attacks. Cheongung-II’s maximum speed is Mach 5, with a length of 4 meters, a weight of 400 kg, and a missile price of about 1.5 billion KRW per unit. It recorded a 100% hit rate during a test launch in 2017.

This Cheongung-II export to the UAE was reportedly achieved by winning the competition against the Israeli-made ‘Barak’ interceptor missile. A military source said, "Winning the competition against the Israeli interceptor missile, which is recognized for its performance in the global market, is highly significant." The UAE nuclear power plant export and the continuous dispatch of the Korean military’s Ark unit are also said to have positively influenced this decision.

This content was produced with the assistance of AI translation services.