US aerospace giant Boeing and South Korea’s flag carrier Korean Air have signed a landmark $36bn (£24bn) agreement for 103 aircraft, in a move that comes as President Donald Trump intensifies pressure on trading partners to boost purchases from American companies.
The order includes Boeing 787, 777 and 737 passenger jets, which Korean Air says will modernise its fleet at a “pivotal moment” as it prepares to merge with Asiana Airlines. “This deal ensures we remain globally competitive,” said Korean Air chief Walter Cho.
The announcement coincided with South Korean President Lee Jae Myung’s meeting with Trump in Washington, where the two leaders discussed US tariffs of 15% imposed on South Korean exports in July.
The Boeing agreement was unveiled at a US–Korea business forum attended by senior officials and industry leaders, including US Commerce Secretary Howard Lutnick, South Korea’s trade minister Kim Jung-kwan, and executives from Samsung, Hyundai, and Nvidia.
The Korean Air deal was one of several signed. Seoul’s trade ministry confirmed that Samsung’s shipbuilding unit will partner Oregon-based Vigor Marine Group to support US Navy maintenance, while Hyundai pledged to raise US investments from $21bn to $26bn, including a new facility capable of producing 30,000 robots annually.
Boeing said the order, which includes 50 737-10 jets, 45 long-range aircraft, and eight 777-8 freighters, would sustain about 135,000 US jobs. “This is a landmark agreement that strengthens our long-standing partnership,” said Boeing Commercial Airplanes CEO Stephanie Pope.
The deal follows months of negotiations. In March, Seoul revealed that Korean Air was finalising agreements with Boeing and GE Aerospace. The $13.7bn GE deal was also announced Monday.
Analysts note that similar trade-linked aircraft purchases are on the rise. In July, Japan ordered 100 Boeing jets, while Indonesia’s Garuda agreed to buy 50 as part of tariff talks with Washington. These wins have helped Boeing outpace European rival Airbus in global sales.
Boeing continues to grapple with safety and reputational challenges, including two fatal 737 crashes in Indonesia and Ethiopia, and more recent mid-air mechanical failures. Worker strikes have also slowed production. Nonetheless, Monday’s announcement underlines Boeing’s resurgence, as Korean Air’s latest order pushes its total Boeing commitments this year to more than 150 aircraft.
