Morrison and Moon to sign bilateral defence agreements

The agreements, to be signed during the South Korean President’s historic visit to Australia, will see an elevation of the Australia-Korea relationship.

South Korean President Moon Jae-in arrived in Canberra on Sunday night. Picture: Adam Taylor

Scott Morrison and South Korean President Moon Jae-in will clinch agreements on Monday to boost bilateral defence industry ties and create an Armoured Vehicle Centre of Excellence in Geelong.

The agreements, to be signed during the President’s historic visit to Australia, signal South Korean defence giant Hanwha is the leading contender to build $30bn worth of new infantry fighting ­vehicles for the Australian Army.

Mr Moon, who arrived in Canberra on Sunday night, will also sign a new low and zero-emissions technology partnership with the Prime Minister, paving the way for future “green hydrogen” deals.

The visit, coinciding with the 60th anniversary of Australia-Korea relations, will see the elevation of the Australia-Korea relationship to the status of a comprehensive strategic partnership.

An agreement to ensure Australian critical minerals exports to South Korea’s tech sector is also expected.

The Australian government will use the visit to formally award Hanwha a $1bn contract to build 30 self-propelled howitzers and 15 armoured ammunition resupply vehicles for the army in Geelong.

The contract is the largest between Defence and an Asian arms manufacturer and dates back to the last federal election when the government promised the howitzers would be constructed in Geelong in an attempt to retain the seat of Corangamite, then held by Sarah Henderson.

The pledge wasn’t enough to save Ms Henderson, who later shifted to the Senate, but the creation of an Armoured Vehicle Centre of Excellence in Geelong suggests the government could seek to use the $30bn infantry fighting vehicle contract as vote lure. The Australian understands Hanwha’s Redback infantry fighting vehicle tested well against its competitor, from Germany’s Rheinmetall.

Rheinmetall had been the leading contender for the contract because the company was also building combat reconnaissance vehicles for the army at a “centre of excellence” in Redbank, Queensland.

Mr Morrison said the self-­propelled howitzer contract would create 300 jobs during construction, acquisition and maintenance of the mobile artillery platforms.

“We are partnering with Hanwha to create an Armoured Vehicle Centre of Excellence in the Geelong region, which will establish a further strategic defence industry hub and future export opportunities for Australian businesses,” he said.

During his visit, the President and first lady will lay wreaths at the Australian War Memorial and the nearby Australian National Korean War Memorial, commemorating the nations’ shared sacrifice during the Korean War.

They will receive a ceremonial welcome by the Governor-­General at Government House. Mr Moon will also meet Anthony Albanese, NSW Premier Dominic Perrottet and NSW Governor Margaret Beazley.

Australia exported $25.2bn worth of goods and services to South Korea in 2020, including more than $18bn worth of iron ore, coal, natural gas and beef.

Australia-Korea Business Council executive director Liz Griffin said the President’s visit would “shine a much-needed spotlight on the importance of our bilateral relationship with Korea”.