Baghdad directs funding for $2.78B Korean defense deal

Shafaq News- Baghdad

Iraqi Finance Minister Faleh Sari on Tuesday directed funding for the country's air defense systems contract with South Korea, during talks with Defense Minister Nayef Al-Shammari.

The Finance Ministry said the decision aims to strengthen Iraq's ability to protect its airspace, reaffirming its commitment to securing the necessary funding for weapons procurement and military equipment.

The agreement dates back to September 2024, when South Korean defense manufacturer LIG Nex1 announced a 3.7 trillion-won ($2.78 billion) contract to supply Iraq with its Cheongung-II medium-range surface-to-air missile defense system. An Iraqi government source previously told Shafaq News that the deal covered eight air defense batteries valued at $2.63 billion.

Iraqi lawmaker Faleh Al-Khazali warned in July 2026 that Baghdad risked losing the contract over delayed payments, revealing that an initial $500 million installment had been paid, while the remaining payments were held up by funding shortages and insufficient budget allocations.