Iraq's $2.7 billion South Korean air defense deal at risk, lawmaker warns

BAGHDAD, Iraq — A $2.7 billion air defense agreement Iraq signed with South Korea is at risk of collapsing, the head of the Munsur Bloc in the Iraqi parliament, Faleh al-Khazali, said. He noted that the Defense Ministry had already paid a $500 million first installment under the contract, with the remainder due in 2025. Al-Khazali said budget shortfalls have prevented Iraq from completing the remaining payments. According to the lawmaker, Seoul has formally indicated it could sell the system to another country if Iraq fails to settle the outstanding amount. In November 2025, a government source confirmed the deal covering the purchase of eight batteries from South Korea at a value of $2.63 billion. The source said the batteries would be delivered consecutively if payments were completed, but warned the agreement could otherwise fail.