South Korea has signed a contract to mass-produce ground communication devices for joint operations with the military's new satellite launched last year, the arms procurement agency said Monday.

Under the deal, two local defense firms -- LIG Nex1 Co. and Hanwha Systems Co. -- will produce eight different ground-based communication devices through 2025 with a budget of 888.5 billion won ($748.5 million), according to the Defense Acquisition Program Administration (DAPA).

The military launched its first communication satellite, the Anasis-II, in 2020 atop a rocket manufactured by US commercial space firm SpaceX.

The satellite project is expected to enhance the military's capabilities to cope with network-centric warfare based on increased transmission capacity and security, the agency said.

"The mass production of ground-based devices for the military's satellite information system will enhance its defense capabilities and also contribute to the development of the space defense industry," DAPA said in a statement. (Yonhap)