The arms procurement agency said Wednesday it will complete the deployment of some 100 next-generation battle tanks fitted with an indigenous engine and transmission by 2017.

During a defense project committee meeting presided over by Defense Minister Han Min-koo, the government decided to deploy the

K-2 Black Panther by the end of 2017, according to the Defense Acquisition Program Administration (DAPA).

The development of the advanced combat vehicle had been delayed after it repeatedly failed to meet the military's requirements due to faulty components. Despite some controversy, the Joint Chiefs of Staff lowered the bar for its acceleration performance, paving the way for its deployment.

"The K-2 battle tank will allow the military to have advanced combat vehicles with improved mobility and firepower fit for future environments," DAPA spokesman Kim Si-cheol said. 

"We can overcome numerical inferiority compared to North Korea with this high-quality battle tank, and we expect the K-2 to be actively exported to foreign markets," he added.  

The sheer number of North Korea's battle tanks is some 1.7 times larger than that of the South, though most of what the communist country owns are outdated, the spokesman said without elaborating. 

The battle tank development project worth more than 2 trillion won (US$1.84 billion) first began in 2006 after a decade of research and development to replace tanks, including the K1 and the aging U.S.-built M48.

It features an auto-loaded 120mm cannon, reaches speeds of up to 70 kilometers per hour and can cross rivers as deep as 4.1 meters using a snorkel, according to DAPA. Modeled after the German-developed MTU-890, the K2 features a 1,500-horsepower diesel engine and transmission. 

Some 100 K-2 tanks were put into service beginning in July this year. 

In the meeting, the Seoul government also approved a plan to buy the Aegis Combat System from the U.S. defense firm Lockheed Martin for the country's three Aegis destroyers called Gwanggaeto the Great-class destroyer set to be deployed starting in 2023 under the Foreign Military Sales (FMS) program.

The integrated naval weapons system uses powerful computer and radar technology to track and guide weapons to destroy targets, according to the defense company. 

"The Gwanggaeto-III destroyers armed with the world's top-class combat system will greatly boost our ability to counter threats from land, sea and air by allowing them to detect, track and intercept ballistic missiles," spokesman Kim said.

DAPA is planning to sign a contract with the U.S. in the first half of next year, he noted, while refusing to comment on the projected budget for the program. 

Meanwhile, the government reversed its plan and decided not to put on the table whether to change the contractor for its project to upgrade aging F-16 fighters from British defense company BAE Systems to Lockheed Martin.

In 2012, South Korea selected BAE as the contractor to upgrade

134 F-16 jets, but the project suffered delays for unclear reasons, and South Korea halted the contract after the U.S. government asked for about 500 billion won and BAE about 300 billion won in additional costs, which Seoul saw as excessive.

"Discussions are underway with the U.S. government, and after the process, we will lay this issue before the committee meeting due next month," Kim said. (Yonhap)