A payment dispute threatens SAM-X

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A payment dispute threatens SAM-X

The Ministry of National Defense said its SAM-X project for the procurement of 48 PAC-3 Patriot missile-launch pads will very likely be scuttled.

The deal for the pads, for South Korea's next generation of guided weapons, was placed in jeopardy after a disagreement with the U.S. supplier, the ministry announced on Friday.

The $1.8 billion deal appeared to be jeopardized by the supplier's demands that South Korea either make an additional payment of $330 million or accept a smaller order if it wanted to make payments on an incremental basis.

A ministry official said the deal would likely be canceled with the new demands to reduce the number of the PAC-3s to 32 and the number of missiles from 202 to 170.
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