Iraq signed a $1.1 billion deal with South Korea to buy 24 multi-role light fighters, officials were quoted as saying by AFP.
The Korea Aerospace Industries (KAI) said it would deliver the T-50IQ, a variant of its T-50 supersonic aircraft, to Baghdad between 2015 and 2016.
The firm is also expecting to sign an additional $1 billion deal in 2014 to provide parts, equipment and pilot training for 20 years.
The T-50IQ is an advanced multi-role fighter that is equipped with precision-guided weapons, missiles and machine guns.
"It's the biggest order in the history of South Korea's arms exports," a KAI spokesman was quoted as saying in the report.
The T-50 is South Korea's first supersonic aircraft and one of the world's few supersonic trainers. After its maiden flight in 2002, the aircraft entered active service in 2005.
The trainer has been developed into combat and multi-role variants.
Earlier, KAI has pursued T-50 attack variant deals with Indonesia, Turkey and other countries. In October, the Philippines also agreed to buy 12 fighters.