$1.9B Aegis Combat System Sale Approved by U.S.

A determination approving a possible Foreign Military Sale to the Republic of Korea has been approved by the U.S. State Department. The required certification notifying Congress of this possible sale was delivered by the Defense Security Cooperation on June 9, 2015. The notice of a potential sale is required by law but does not mean the sale has been concluded. The sale will be for the Aegis Combat Systems and associated equipment, parts and logistical support for an estimated cost of $1.91 billion.

The request was made by the Republic of Koreas for 3 Aegis Shipboard Combat Systems, 3 MK-41 Vertical Launching Systems, 3 Common Data Link Management Systems, 3 AN/UPX-29(V) Identification Friend or Foe Interrogators, spare and repair parts, support equipment, publications and technical documentation, personnel training and training equipment, tool and test equipment, U.S. Government and contractor technical, engineering, and logistics support services, and other related elements of logistics support.

Both China and Russia have expressed concerns that the potential sale threatens their security and jeopardizes China’s strategic deterrent. The U.S. takes the position that the proposed sale will in fact not alter the basic military balance in the region. The sale will contribute to the foreign policy and national security objectives of the United States by meeting the legitimate security and defense needs of an ally and partner nation. It is vital to the U.S. to assist our Korean ally in maintaining a strong self-defense capability as they are a key partner and major economic power in East Asia and the Western Pacific region. The sale will have no adverse impact on the U.S. defense readiness.

The principal contractors will be Lockheed Martin Maritime Systems and Training in Morristown, New Jersey; Raytheon Company in Andover, Massachusetts; General Dynamics Armament Systems in Burlington, Vermont. Although offsets have been requested, they are unknown this time and will be determined during negotiations between the ROK and contractors.

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