Hanwha Aerospace (KRX:012450) and Korea Aerospace Industries (KRX:047810) signed a memorandum of understanding to develop long-range air-to-air missiles and other airborne weapons for domestically produced aircraft, according to a release by Hanwha Aerospace on Tuesday.

Under the deal, the two firms will cooperate to integrate air armament into the KF-21 and FA-50 aircraft platforms, and promote joint marketing for aircraft and air armament exports, the release said.

Shares of Hanwha Aerospace fell more than 6% in recent trade, while those of Korea Aerospace Industries declined nearly 1%.