Korea and Israel yesterday began talks to increase cooperation in the defense industry and technology amid heated competition between Israeli and U.S. companies to win a $2 billion contract to build an airborne early warning system for the Korean Air Force.
The three-day meeting in Tel Aviv will be led by Lee Young-hwan, deputy minister for acquisition, and Amos Gilad, Israel’s head of political military bureau, the Defense Ministry said. Lee is the ministry’s top official in charge of military procurement.
IAI ELTA, an Israeli aircraft maker, and Boeing Co. from the United States are vying for Korea’s airborne warning and control system contract, codenamed E-X.
The ministry is expected to announce the winning bidder as early as Dec. 10.
Military sources said IAI ELTA offered lower prices than Boeing. But officials said inter-operability between Korean and U.S militaries is also a crucial consideration because the country depends much on the U.S. Forces Korea, Seoul officials said.
Last Wednesday, U.S. Ambassador to Korea Alexander Vershbow met Defense Minister Yoon Kwang-ung and reportedly called for a “fair and objective” way in the process of selecting a contractor.
The Defense Ministry said the Korea-Israeli meeting has nothing to do with the E-X project.
“It is a general discussion on defense industry cooperation. The E-X project is not on the agenda for the meeting,” an official said.
By Jin Dae-woong
http://www.koreaherald.co.kr/SITE/data/html_dir/2005/11/30/200511300037.asp
Korea, Israel Discuss AWACS
By Jung Sung-ki
Staff Reporter
South Korean officials are now on a trip to Israel to discuss military cooperation with their Israeli counterparts, including cooperation in aviation technology, the Defense Ministry said Tuesday.
The visit came amid rumors that Seoul is likely to select Israeli early aircraft warning systems for its $2 billion weapons procurement project.
The three delegates, led by Lee Young-hwan, deputy minister for acquisitions, are attending a three-day meeting to discuss military cooperation between the two nations that ends Wednesday, the ministry said in a statement.
Boeing of the United States and IAI ELTA of Israel have been vying for South Korea’s airborne early warning and control systems (AWACS).
Under its mid- and long-term weapons buildup program toward a self-reliant defense posture, Seoul plans to purchase four AWACS by 2012.
ELTA maintains the upper hand in the deal because of its lower price offer than that of Boeing as the ministry plans to buy lower priced products as long as they meet the requirements of the Air Force, according to reports.
Boeing is reportedly proposing $1.5 billion for four AWACS, $800 million down from its proposal last year, while ELTA is suggesting $1.1 billion.
The ministry plans to make an intensive inspection of the operational capabilities of Boeing’s B-737 and ELTA’s G-550 by Nov. 20 and make public the results in early December.
South Korea has no air surveillance system of its own and relies on U.S. reconnaissance aircraft based in Okinawa, Japan.
The previous meeting was held in November 2003 in Seoul and the next meeting was delayed due to the Israeli withdrawal of Jewish settlements from the Gaza Strip, the statement said.
http://times.hankooki.com/lpage/nation/200511/kt2005112918423811990.htm
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November 30, 2005 at 2:00 pm