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As part of a $1 billion SAM-X project, Korea will establish two Patriot system battalions. Seoul plans to purchase 48 second-hand Patriot Advanced Capability-2 (PAC-2) launch modules, radar and missiles from Germany this year, while acquiring ground control equipment from Raytheon. The latter will provide engineering, planning and program development services to integrate the Patriot fire units into South Korea's national command-and-control structure.

The PAC-2 version came into being late in the 1980s because tests indicated that although Patriot was capable of intercepting inbound ballistic missiles, it was questionable whether or not the MIM-104A/B missile was able to reliably destroy them. This necessitated the introduction of the PAC-2 missile and system upgrade.

Radar search algorithms were optimized and the beam protocol while in "TBM search" was modified.

PAC-2 also saw Patriot's first major missile upgrade, with the introduction of the MIM-104C, or PAC-2 missile. This missile was optimized for ballistic missile engagements. Major changes to the PAC-2 missile were the size of the projectiles in its blast-fragmentation warhead — changed from 2 grams to 45 grams — and the timing of the pulse-doppler fuse, which was optimized for high-speed engagements, though it retained its old algorithm for aircraft engagements if necessary.

Engagement procedures were also optimized, changing the method of fire the system used to engage ballistic missiles. Instead of firing two missiles in an almost simultaneous salvo, a brief delay, between 3 and 4 seconds, was added in order to allow the second missile fired to discriminate a ballistic missile warhead in the aftermath of the explosion of the first.

PAC-2 was first tested in 1987 and reached Army units in 1990, in time for deployment to the Middle East for the Persian Gulf War. Although no evidence of actual hits was recorded, it was here that Patriot started to be regarded as a successful ABM system and proof that that ballistic missile defense was indeed possible.

The complete study on its effectiveness remains classified.