Australia and South Korea have struck a $1 billion defence deal as leaders Scott Morrison and Moon Jae-in hold formal talks in Canberra.
The South Korean president and First Lady Kim Jung-sook were welcomed to Parliament House by the prime minister on Monday where they signed the official visitors book.
Australia and South Korea will upgrade their ties to "comprehensive strategic partnership" status during the visit.
A new $1 billion deal — under which Korean defence company Hanwha will provide 30 self-propelled howitzer artillery weapons, 15 ammunition supply vehicles and radars to detect enemy artillery — is the largest defence contract struck between Australia and an Asian nation.
The new vehicles will be able to quickly fire and move to avoid enemy counterattacks.
Defence Minister Peter Dutton touted the deal as a boost for Australian firepower and security in the Indo-Pacific.
Australian Defence Minister Peter Dutton. Source: AAP
"(It) is one of several projects that will modernise the Australian Army, ensuring it continues to maintain a capability advantage now, and into the future," he said.
"We are committed to keeping our region safe while protecting our interests in a rapidly changing global environment."
The deal is expected to create at least 300 jobs in the greater Geelong region, where the manufacturing facility will be based. Construction is due to start in 2022.
Mr Morrison said the relationship continued to grow, underpinned by trade, shared values, common regional strategic interests and a commitment to an open, inclusive and prosperous Indo-Pacific region.
"Our comprehensive strategic partnership with the Republic of Korea is underpinned by our joint commitment to defence and security cooperation," Mr Morrison said.
The two nations this year mark 60 years of diplomatic relations.
Mr Moon is the first international leader to visit Australia since borders reopened.
Australia has comprehensive strategic partnerships, or their equivalents, already with ASEAN, China, Fiji, France, Germany, India, Indonesia, Japan, Malaysia, and Papua New Guinea.
South Korea is Australia's fourth-largest trading partner and fourth-largest export market under a free trade agreement that has been in force since December 2014.
Mr Moon, who concludes his presidential term next year, has previously flagged greater cooperation with Australia on low-carbon technology and space development, as well as national infrastructure and defence.
In particular, his country is pushing for a region-wide partnership to boost the production and distribution of hydrogen, which by 2050 is expected to account for 13 to 18 per cent of world energy.
