US aircraft manufacturer Boeing has secured a major order from Korean Air worth around $36 billion (£24 billion), marking one of the biggest commercial deals between the two countries in recent years. The agreement, covering 103 passenger and cargo planes, was announced in Washington on Monday during trade-focused meetings between US and South Korean leaders.
The deal comes as South Korea’s flag carrier undergoes a major transformation with its planned merger with Asiana Airlines. Korean Air chairman Walter Cho said the purchase would help modernise the airline’s fleet at a “pivotal moment,” ensuring it remained competitive in the global market.
According to Boeing, the order includes 50 of its 737-10 passenger jets, 45 long-range 787 and 777 models, and eight 777-8 freighter aircraft. Boeing’s commercial planes chief Stephanie Pope described the agreement as “landmark,” adding that the contract would help support around 135,000 jobs across the United States.
The announcement came just hours after South Korean President Lee Jae Myung met with President Donald Trump in Washington to discuss trade frictions, including the 15% tariffs imposed by the US on South Korean exports in July. Both leaders later joined government and business figures at the unveiling of the agreement. Among those present were US Commerce Secretary Howard Lutnick and South Korea’s Trade Minister Kim Jung-kwan, alongside senior executives from Samsung, Hyundai Motor Group and Nvidia.
Seoul’s trade ministry said the Boeing contract was part of a series of agreements reached during the visit. Samsung’s shipbuilding subsidiary signed a deal with Oregon-based Vigor Marine Group to provide maintenance services for the US Navy, while Hyundai announced plans to increase its US investment from $21 billion to $26 billion. The automaker also revealed plans for a new American facility capable of producing 30,000 robots annually.
The Boeing order had been anticipated for several months. In March, South Korean officials said talks were under way between Korean Air, Boeing and US engine manufacturer GE Aerospace. On Monday, a separate deal with GE, valued at $13.7 billion, was also confirmed.
Boeing has seen a series of new contracts tied to trade agreements signed by Washington. Earlier this year, Japan committed to purchasing 100 Boeing jets as part of its deal with the US, while Indonesia’s Garuda placed an order for 50 aircraft linked to tariff negotiations. The surge in orders has boosted Boeing’s sales against its European rival Airbus.
The latest order provides a boost for Boeing as it continues to recover from several crises, including two fatal crashes in Indonesia and Ethiopia involving its 737 Max aircraft, a mid-air panel blowout in 2024, and an extended strike by US factory workers last year that slowed production.
With Korean Air’s purchase, the airline has now placed more than 150 Boeing aircraft orders and commitments this year, solidifying its role as one of the US manufacturer’s largest overseas customers.
