Korean Air recently signed a $32 billion deal with American companies Boeing and GE Aerospace for 50 aircraft, further strengthening US-ROK ties and showcasing mutual trust in American-made aviation. This deal will bolster US manufacturing, create local jobs, and continue the long-standing partnership between Boeing and Korean Air.
On March 21st, 2025, the US Department of Commerce convened a signing event for the landmark deal between Korean Air and American aviation pioneers Boeing and GE Aerospace. Valued at approximately $32 billion—$24.9 billion to Boeing and $7.8 billion to GE Aerospace—the agreement includes the purchase of up to 50 Boeing aircraft equipped with GE Aerospace engines. With delivery expected to be completed by 2033, this deal highlights South Korea’s ongoing interest and investment in cutting-edge American aviation technology. At the signing ceremony, President and CEO of Boeing Kelly Ortberg, noted that the deal reflects “international confidence in aircraft made in America,” adding that it underscores Boeing’s commitment to strengthening global partnerships and advancing innovation in the aviation industry.
The bulk of Boeing planes are assembled at Boeing’s major production plants in Everett and Renton, Washington and North Charleston, South Carolina. These plants, which already employ thousands, are set to see increased activity from the effects of this order. As one of South Carolina’s largest employers with almost 8,000 employees, Boeing is likely to grow its workforce and supplier network further. This follows expansion plans announced in December 2024, which included a $1 billon investment in facility upgrades and the creation of approximately 500 new jobs in North Charleston within the next five years.
This deal marks another milestone in the decades-long relationship between Korean Air and Boeing. The partnership traces its origins to 1948, when the former operated as Korean National Airlines under the South Korean government and flew Korea’s first commercial plane the DC-3—an airplane model from Boeing’s heritage lineup. Following privatization, Korean Air acquired its first Boeing 707 and launched a new route connecting Seoul, Tokyo, and Los Angeles, becoming the first South Korean carrier to operate in the United States in 1971. Korean Air has since relied heavily on Boeing aircraft, like the Boeing 747, for business development and international expansion—especially during its steady commercial growth in the 1980s. As of today, Korean Air boasts a fleet of around 168 aircraft, with about 65-70% consisting of Boeing models.
Boeing has also deepened its presence in Korea over the years. In 1988, Boeing established its Korean counterpart: Boeing Korea, a key supplier of commercial and military aircraft for the peninsula. Boeing Korea is headed by recently appointed CEO Will Shaffer and employs more than 200 people around various cities in Korea. More recently, Boeing established the Boeing Korea Engineering and Technology Center in 2019 to drive innovation in emerging aerospace technologies, such as autonomous flight, artificial intelligence, smart manufacturing systems, mobility platforms, and more.
Moreover, Boeing sources components and services from upwards of 48 Korean companies, including Korean Air for aircraft parts such as wing tips and flap support fairings built in Busan for the 787 Dreamliner. Beyond its commercial passenger operations, Boeing maintains long-standing defense partnerships with major Korean aerospace firms, including Korean Air Aerospace Division (KAL-ASD), Korea Aerospace Industries (KAI), and Huneed Technologies. Today, Korea stands as a major operator of Boeing defense systems including the military aircrafts F-15K, Peace Eyes, P-8A Poseidon, while being the world’s fourth largest user of Chinook helicopters. These partnerships support a wide range of commercial and military programs and reflect the deep industrial cooperation between South Korea and the United States in aviation and defense.
The Korean Air order was first previewed at the Farnborough International Airshow last year with a Memorandum of Understanding (MOU), revealing the Boeing-Korean Air partnership’s true scale and ambition. Now finalized, the deal not only represents a commercial triumph but also the strategic ties between South Korea and the United States—grounded in shared innovation, economic collaboration, and trust in high-quality manufacturing.
Emma Potts is a Spring 2025 Young Professional at the East-West Center in Washington. Emma recently graduated from Columbia University, majoring in Political Science and East Asian Languages & Cultures.