The U.S. Defense Security Cooperation Agency notified Congress Friday of plans to sell to the Republic of Korea Patriot air-defense missile systems in a defense contract that could be worth as much as $404 million to primary contractor Raytheon (NYSE:RTN).
Specifically, DSCA says that the ROK is requesting that the U.S. sell it 112 Patriot Anti-Tactical Missiles (ATM) plus related test equipment, spare parts, and provide necessary personnel training, publications and technical data, U.S. Government and contractor technical and logistics support services, and other related elements of logistics support. At a date subsequent to this initial sale, DSCA anticipates that Korea will contract for upgrades to the purchased missiles, putting them in the "Guided Enhanced Missile-Tactical" (GEM-T) configuration through a Direct Commercial Sale from the contractor.
DSCA notes that this sale "will contribute to the foreign policy goals and national security objectives of the United States by meeting the legitimate security and defense needs of an ally and partner nation," providing the ROK with "an enhanced capability to defend against ballistic missile, aircraft and cruise missile threats."
DSCA further assures Congress that if approved, this defense contract "will not alter the basic military balance in the region." Nor will it have any "adverse impact on U.S. defense readiness."
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