31 January 2013

News Story: Philippines Nears $443 Million Deal for South Korea Fighter Jets


By Daniel Ten Kate and Norman P. Aquino

The Philippines is close to reaching an 18 billion peso ($443 million) deal to purchase 12 fighter jets from South Korea as it moves to bolster its defenses amid tensions with China over disputed territory.

Defense Assistant Secretary Patrick Velez today said the government intends to finalize a contract with Korea Aerospace Industries Ltd. (047810) by the end of February and two could be delivered in the next six months. The Philippines hasn’t had an operating fighter jet since 2005.

“The military upgrade is already a priority before our incident with China,” Edwin Lacierda, a spokesman for President Benigno Aquino, told reporters today. “It is not aimed at any particular country. It is our obligation to modernize our military hardware.”

Asian countries including China and Japan are increasing military spending as the region grapples with maritime disputes involving oil, natural gas and fishing rights. The Philippines has tussled with China over control of areas in the South China Sea where both claim sovereignty, leading to a standoff over the Scarborough Shoal last year.

Read the full story at Bloomberg Businessweek