Photo by Wolfgang Weiser
US aerospace giant Boeing and South Korea’s flagship carrier Korean Air have finalised a landmark $36bn (£24bn) agreement for the purchase of 103 aircraft, the companies confirmed on Monday, in a deal that coincided with President Donald Trump’s call for US trading partners to expand business with American firms.
The purchase order covers a mix of 787 Dreamliners, 777 long-haul jets and 737 passenger aircraft, according to a joint announcement. Korean Air chief executive Walter Cho described the acquisition as arriving at a “pivotal moment” for the airline, saying the new planes would modernise its fleet and strengthen its competitiveness as it moves ahead with a planned merger with Asiana Airlines.
The deal was disclosed shortly after South Korean President Lee Jae Myung met Trump in Washington for talks dominated by the 15% tariffs the US imposed on South Korean imports in July. The announcement was made during a high-profile meeting between US and South Korean business and government leaders, attended by US Commerce Secretary Howard Lutnick and South Korea’s trade minister Kim Jung-kwan.
Senior executives from Samsung and Hyundai Motor Group, along with Nvidia chief executive Jensen Huang, were also present. Seoul’s trade ministry said the Boeing agreement formed part of a wider set of commercial arrangements unveiled at the event.
These included a partnership between Samsung’s shipbuilding subsidiary and Oregon-based Vigor Marine Group to provide maintenance support for the US Navy. South Korea had previously pledged $150bn to bolster the US shipbuilding sector as part of its trade accord with Washington. Hyundai also revealed plans to increase its investment in the United States from $21bn to $26bn. The carmaker said it would build a new facility capable of producing 30,000 robots annually, following the summit between Trump and Lee.
Boeing’s commercial airplanes head Stephanie Pope hailed Korean Air’s order as a “landmark agreement.” The package consists of 50 Boeing 737-10 passenger aircraft and 45 long-haul planes, as well as eight 777-8 Freighter cargo jets. Boeing said the order would support about 135,000 jobs across the United States, where the company employs more than 170,000 people globally.
With this announcement, Korean Air has committed to more than 150 Boeing aircraft purchases and options this year alone. Seoul had flagged in March that Korean Air was finalising an order with Boeing and US engine supplier GE Aerospace. On Monday, alongside the Boeing deal, the airline confirmed a $13.7bn agreement with GE for aircraft engines.
The purchase mirrors a trend among US allies negotiating trade deals with Washington. In July, Japan agreed to buy 100 Boeing jets as part of its trade pact with the Trump administration. Indonesia’s national airline Garuda also committed to purchasing 50 Boeing aircraft as part of an arrangement linked to a reduction in US tariffs on Indonesian goods.
These contracts have strengthened Boeing’s position over European rival Airbus, which has trailed in sales this year.
The agreement comes despite Boeing’s turbulent recent history. The company has endured years of safety and operational crises, including two fatal crashes involving its 737 Max aircraft—a 2018 disaster in Indonesia that killed 189 people and a 2019 crash in Ethiopia that claimed 157 lives. In 2024, a Boeing 737 Max suffered a mid-air panel blowout after take-off, renewing concerns over safety.
Last year, production was further disrupted by a nearly eight-week strike involving 30,000 US workers, which significantly slowed output at Boeing’s plants.
Nevertheless, the latest Korean Air order—along with similar large-scale purchases from Japan and Indonesia—represents a major commercial and political win for Boeing as the Trump administration presses allies to deepen trade ties with the United States.
