Hyundai E&C, KAI to develop export-type package for defense industry

South Korea's Hyundai Engineering & Construction (E&C) and Korea Aerospace Industries Ltd. (KAI) will jointly develop an export package for the nation's defense sector.

Hyundai E&C on Monday said it signed at its Seoul headquarters a strategic business agreement with KAI on raising the export competitiveness of the defense and construction sectors in aviation.

Under this deal, both companies will jointly commercialize export packages in defense and construction. They will also exchange information through global networks such as offices abroad and continue cooperative ties to explore customization of export strategies by country.

Hyundai E&C has an impressive track record of building domestic and foreign airports like Incheon International Airport, airfields and domestic military facilities. KAI focuses on related businesses such as exports of about 200 military aircrafts to Southeast Asia, Latin America and the Middle East.

The agreement will further strengthen competitiveness in winning orders by combining into one package military aircraft and aviation construction know-how such as for airports, air traffic control facilities, runways and hangars.

This collaboration is a voluntary project based on major government policy goals like the country securing 5% of global defense exports and becoming one of the world's four major exporters in the field. Last year, defense exports reached a record-high $17 billion.

"Leading the development of aerospace technology, mutual cooperation between KAI and Hyundai E&C will serve as the cornerstone of 'Team Korea' in the defense industry," said Hyundai E&C CEO Yoon Young-joon.

Write to Eun-Ji Shim, Kyung-Min Kang at summit@hankyung.com