The aircraft was delivered during a ceremony in Gimhae, South Korea, which was attended by South Korean and U.S. government and industry officials.
"Peace Eye increases South Korea's self-defense capacity with powerful airborne-surveillance and battle-management capabilities that will help enhance the security of the Korean peninsula," said Randy Price, Peace Eye program manager for Boeing.
"Working closely with the (South Korean air force) … the U.S. government and our Korean industry partners was key to making today's milestone a reality."
Three additional Peace Eye aircraft are being modified by Korean Aerospace Industries in Sacheon, South Korea, and will be delivered to the air force next year.
The Peace Eye program includes four 737 AEW&C aircraft plus ground support segments for mission crew training, mission support and system maintenance.
Based on the Boeing's 737-700 commercial airplane, the 737 AEW&C aircraft is designed to provide airborne battle-management capability with an advanced multi-role, electronically scanned radar and 10 state-of-the-art mission crew consoles that are able to track airborne and maritime targets simultaneously.