KAI inks $1.4 bn supersonic fighter jet mass production deal

Korea Aerospace Industries Ltd. (KAI), the country’s sole military aircraft manufacturer, said on Tuesday it signed a 2 trillion won ($1.4 billion) deal with the government to mass-produce the KF-21 to bolster the national air force while aiming to export the homegrown supersonic fighter jet.

KAI agreed with the Defense Acquisition Program Administration (DAPA), South Korea’s state-run arms procurement agency, to supply 20 units of the KF-21 from 2026 in stages, as well as technical manuals and training.

“The KF-21, a symbol of true self-defense, will contribute to improving the power of the national air force and further developing the advanced aerospace industry,” said KAI CEO Kang Goo-young in a statement issued on the 74th anniversary of the Korean War, which broke out on June 25, 1950.

The supersonic jet is set to replace the South Korean Air Force’s F-4 Phantom II fighter-bombers, which were recently retired, and the aging F-5 supersonic fighter jets, which are scheduled to end services.

KAI, which sold the KF-50 light fighter jets to Poland and Malaysia, aims to export the KF-21 taking advantage of the growing global interest in South Korean military aircraft.

“The KF-21 is highly regarded in the 4.5 generation fighter jet market as it is the first fighter jet with state-of-the-art avionics, advanced materials and technology developed since the emergence of the Fourth Industrial Revolution, which is technology such as AI and big data,” KAI said, referring to artificial intelligence.

DECADE FOR DEVELOPMENT

South Korea launched the project to develop a next-generation supersonic fighter jet with Indonesia in 2015 using the Northeast Asian country’s homegrown technology for key components to replace its aging fleet of F-4 and F-5 fighters, third-generation US-designed jets introduced in the 1960s.

Seoul continued to develop the supersonic fighter jet although Indonesia did not pay its share of the project's cost. South Korea accepted the partner’s request to cut its share of payments to one-third of the originally agreed amount.

The development rate of the KF-21 is at 80%, but it has proven its performance and stability through initial test flights.

The warplane, nicknamed Boramae, succeeded in air-to-air refueling in March and completed the test of firing the Meteor, a European active radar-guided, beyond-visual-range air-to-air missile. The KF-21 is increasing the completeness of a fighter jet by ramping up aircraft altitude, speed and maneuverability for wider operational areas.

South Korea gave the initial nod in March for mass production of the KF-21, which had won provisional approval as a jet suitable for combat in May 2023.

KAI has been preparing for the fighter jet’s mass production since earlier this year by checking the supply chain with contractors, setting up production equipment and securing jigs and fixtures.

The company aims to procure 65% of the parts for the KF-21 in South Korea by working with about 600 local companies.

By Hyung-Kyu Kim

khk@hankyug.com

 
Jongwoo Cheon edited this article.