Sky-High Deals: Korean Air's $36 Billion Boeing Jet Purchase Amid Trade Tensions

Korean Air has forged a landmark agreement with Boeing to acquire 103 aircraft valued at around $36 billion, which coincides with ongoing trade negotiations involving the Trump administration. This deal features a variety of models including 787, 777, and 737 jets, and is strategically timed to ensure Korean Air remains competitive as it merges with Asiana Airlines.

The announcement came shortly after South Korean President Lee Jae Myung met with President Trump to discuss significant trade issues, including a 15% tariff imposed by the U.S. on South Korea. Both U.S. Commerce Secretary Howard Lutnick and South Korea’s Trade Minister Kim Jung-kwan were present for the deal announcement that took place during discussions between government representatives and business leaders.

Highlighted at the event were top executives from major firms such as Samsung and Hyundai Motor Group, underscoring the cooperative economic climate. The Korean Air order is part of broader trade commitments by South Korea, which pledged $150 billion towards the U.S. shipbuilding sector, alongside plans from Hyundai to increase its American investment from $21 billion to $26 billion.

Boeing’s commercial planes chief, Stephanie Pope, celebrated the deal, emphasizing its potential to create around 135,000 jobs in the U.S. The specifics of the order include 50 Boeing 737-10 passenger jets and 45 long-range models, alongside eight 777-8 Freighter cargo planes. To date, Korean Air has placed over 150 orders for Boeing aircraft in 2023 alone.

This acquisition aligns with similar moves by other countries negotiating trade deals with the U.S., like Japan’s agreement for 100 Boeing jets. Despite previous setbacks including fatal crashes and production slowdowns due to strikes, the company is now enjoying a resurgence in sales as it edges past European rival Airbus.