Lockheed to buy European satellite for South Korea in F-35 deal

Lockheed Martin Corp said it will buy a European-built military communications satellite for South Korea as part of a $7 billion deal to supply Seoul with 40 F-35 fighter jets, in what industry observers call among the most unusual "offset" agreements ever to accompany a major arms sale.

Lockheed, which builds its own satellites, declined to detail the cost of the new satellite or name its manufacturer, but said the spacecraft would provide a "state-of-the-art" system that met South Korea's military requirements.

"The Lockheed Martin offset commitment ... directly benefits Korean national defense requirements, enables substantial Korean industrial activity and transfers a large amount of high technology to the Republic of Korea," Lockheed said.

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