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Friday, 19 April, 2002, 10:51 GMT 11:51 UK
Boeing wins disputed Korean deal
Protesters opposed to US pressure on South Korea to buy Boeing's jet
There were protests at US pressure to buy from Boeing
Boeing, the US aerospace giant, has won a hotly-contested contract to provide South Korea with new fighter jets amid cries of foul from its unsuccessful European rivals.


We considered security, foreign policy and economic factors

South Korean Defence Ministry statement
After a two-year evaluation, Boeing, with its F-15K aircraft, was chosen over Eurofighter, Dassault and Russia's Sukhoi in a deal expected to be worth more than $4bn.

But Dassault is crying foul over the FX contract, as it has been dubbed.

The firm says that despite promises that the tender would be open and transparent, Seoul has favoured the American company "solely for political considerations".

It is continuing with legal action against the South Korean government "regarding the fairness and transparency of the competition".

Lucrative deal

According to Dassault, its Rafale fighter - which has yet to win a supply deal outside France - performed better in the initial tests.

But it insists that the Ministry of Defence's pro-US stance torpedoed its chances in the second round.

"Since the result of the first phase which has not given Rafale as the winner despite (its) multiple advantages such as lower prices, better technical/operation capacities and technology transfer compared to the F15, such a political decision was anticipated," the company said in a statement.

A statement by the Ministry of Defence said that it had considered security, foreign policy and economic factors in making the final decision.

The decision to go with Boeing is hardly a surprise. There are 37,000 US troops stationed in South Korea, and Seoul has always bought the bulk of its kit from American vendors.

US manufacturers are also benefiting from the fact that they have had ample opportunities to show off their wares - first in Kosovo in 1999 and now in Afghanistan, not to mention the largely unreported attacks on northern Iraq.

Other competitions in Asia, specifically fighter deals in Singapore and Malaysia, now look increasingly sticky for the Europeans.

Lawsuit

Earlier this month Dassault filed a court injunction against the South Korean Government to try to stop the competition.

The company said it believed the process lacked transparency and was biased in favour of Boeing.

The court has not yet made its ruling.

 WATCH/LISTEN
 ON THIS STORY
News image The BBC's Caroline Gluck
"Officials say they have taken into account security, diplomatic and economic factors"
See also:

04 Apr 02 | Asia-Pacific
Korean talks make little headway
21 Mar 02 | Asia-Pacific
Anger over Korea military exercise
14 Mar 02 | Asia-Pacific
N Korea threatens nuclear pull-out
20 Feb 02 | Asia-Pacific
US poses dilemma for young S Koreans
04 Jan 02 | Asia-Pacific
S Korea to buy US missiles
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