S. Korea Rejects Boeing Bid, $7.7 Billion Fighter Bidding Process To Be Restarted

South Korea is planning to restart a $7.7 billion jet fighter bidding process, holding off a contract likely to be awarded to Boeing Company.

“We believe that the whole review process will take about a year,” Defense Ministry spokesperson was quoted as saying by AFP. “We will expedite the process to make sure that the void in our national defence will be limited to a minimum.”

The jet deal had already been delayed for months because of South Korea’s position that the price of the 60 fighters it wanted should not exceed the $7.7 billion approved by parliament.

The deal for replacing the South Korean Air Force's ageing fleet of F-4s and F-5s had initially attracted bids from Boeing, U.S. rival Lockheed Martin and EADS.

But in the end, Boeing’s F-15 Silent Eagle was left with the only eligible candidate because the proposals from the other two competitors came in over the stated budget.

In announcing its decision on Tuesday, the Defence Acquisition Programme Administration (DAPA) suggested the Boeing F-15 was seen as unable to meet the military’s operational requirements, the report said.

“The committee made the decision through in-depth discussions on the security situation and the combat environment based on assessments of the jets’ mission capabilities and prices,” a DAPA spokesperson was quoted as saying in a report.