SEOUL (Reuters) – Korean Air will soon finalise a $32.7 billion deal for new Boeing aircraft and GE Aerospace engines, South Korea’s industry ministry said during a visit to the United States to strengthen bilateral relations.
Korean Air last year said it would order 20 777-9 and 20 787-10 planes from Boeing, with options for an additional 10 aircraft, and signed a memorandum of understanding in July.
If finalised, the plane deal would be worth $24.9 billion. An order for eight spare GE engines, with options for two more, and engine maintenance services would be worth $7.8 billion, South Korea’s industry ministry said in a statement.
South Korea’s Industry Minister Ahn Duk-geun is visiting Washington, D.C. for the second time in a month, as concerns mount around the world over U.S. President Donald Trump’s plan to impose tariffs on multiple trading partners and sectors.
Ahn said the deals would pave the way for further exchanges between the two countries and that the South Korean government would actively support private sector cooperation.
A signing ceremony signalling an intent to strengthen aerospace partnerships was attended by Ahn, U.S. Secretary of Commerce Howard Lutnick and executives from Korean Air, Boeing and GE Aerospace.
“This event marks the first joint participation of Ministers from Korea and the United States under President Trump’s second administration, raising expectations for further cooperation between the two countries in various areas including aviation, semiconductors, shipbuilding and energy,” South Korea’s industry ministry said.
Korean Air in December completed a $1.3 billion acquisition of two-thirds of the country’s second-largest carrier Asiana Airlines, which will make it one of Asia’s biggest carriers.
It launched a new plane livery and corporate identity last week.
Malaysia Aviation Group, the parent company of Malaysia Airlines, said on Friday it would buy 30 new Boeing 737 aircraft for 2029 delivery, while Japan Airlines said on Wednesday it planned to buy 17 more Boeing 737-8 aircraft.
(Reporting by Joyce Lee and Lisa Barrington. Editing by Mark Potter)
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