South Korea said that they will decide next week whether to proceed with the auction for the supplying of 60 next generation fighter jets worth US$7.31 billion.

The defense minister will head the meeting set next Wednesday to review the failed bidding proposals.

Range of options is to be considered, including restarting the bidding process from scratch.

The Defense Acquisition Program Administration (DAPA) suspended bidding after none of the entries from Boeing Co's F-15 Lockheed, Martin Corp's F-35and EADS's Eurofighter Typhoon, submitted bids that met the required price.

An official from the DAPA said, "If the auction falls apart, we will consider all possible options, possibly including splitting the purchase, and find the best solution."

South Korea is set to buy 60 fighters to replace its ageing jets, such as F-5s and F-4s with a target date set in 2017. This is to better face threats posed by North Korea's missile and nuclear programs.