The five-year deal will ensure long-term viability of the Boeing F-15K aircraft, of which South Korea is believed to have around 60.
"Boeing is pleased to continue supporting the F-15 fleet, which has achieved some of the best mission-capability rates of any air force operating the F-15," said Jim O'Neill, vice president and general manager of Boeing Integrated Logistics.
The contract covers life-cycle costs of the planes but Boeing is paid based on the aircraft manufacturer's ability to maintain an agreed number of planes at the ready for missions.
The performance-based contract is an alternative to "the traditional transactional approach to purchasing supply and maintenance support for defense programs," Boeing said.
"With PBLs, customers buy agreed-to outcomes, for example, a set mission-readiness rate versus purchasing spare parts on a transactional basis."
Boeing's South Korean industry partner Hyundai Glovis will handle logistics and supply chain distribution within South Korea. Glovis, part of the Hyundai Motor Group, specializes in ocean and air transportation, inland transportation, logistics consulting, storage, packaging services and supply chain management.
The Boeing-built F-15K Slam Eagles are advanced variants of the F-15E and have been built specifically for South Korea.
South Korea and Boeing signed the deal for the first F-15K aircraft in 2002 with an order for 40, Boeing background data on the aircraft shows. The planes were delivered between 2005, the year of its first flight, and 2008.
South Korea ordered more aircraft in 2010.
Wings and forward fuselages for the F-15K were made by Korea Aerospace Industries in Sacheon, South Korea, and delivered to Boeing's St. Louis factory for final assembly.
The original F-15K is powered by General Electric F110-GE-129 engines, Boeing's background information shows. Later aircraft have two Pratt and Whitney F-100-PW-229 EEP engines and top speed is 1,900 mph.
The F-15K also has an electronic warfare suite including BAE Systems IEWS ALR-56C(V)1 radar warner, BAE Systems IDS ALE-47 countermeasures dispenser system and Northrop Grumman ALQ-135M radar jammer.
The Tiger Eyes sensor suite, provided by Lockheed Martin, includes mid-wave staring array FLIR, laser and CCD TV, terrain following radar and mid-wave staring array FLIR and long-range infrared search and track.
Boeing expects the planes to be operational past 2030.