KAI Secures $1.41 Billion Contract to Launch KF-21 Fighter Jet Production

Korea Aerospace Industries, Ltd. (KAI) has sealed a monumental deal worth 1.96 trillion won (approximately US$1.41 billion) with South Korea’s Defense Acquisition Program Administration (DAPA) to commence the full-scale production of the next-generation KF-21 fighter jet.

This contract encompasses the production of 20 KF-21 units along with essential logistics support such as technical manuals and training.

Describing the deal as pivotal, KAI emphasized its significance in achieving national defense self-reliance through advanced technology, positioning the KF-21 as a cornerstone asset for the country’s Air Force.

Hanwha Aerospace secures a 556.2 billion won deal

Concurrently, Hanwha Aerospace Co. announced a separate agreement with DAPA valued at 556.2 billion won to supply F414 engines for the KF-21. Over the span from this month through December 2027, Hanwha Aerospace will deliver around 40 engines and spare modules, complemented by comprehensive logistics support including maintenance manuals and technical assistance.

The KF-21, slated to replace the retired F-4 Phantom II and aging F-5 jets in the South Korean Air Force, marks a significant advancement in the nation’s defense capabilities.

Targeting 65% parts procurement locally

KAI, buoyed by successful sales of the KF-50 light fighter jets to Poland and Malaysia, aims to capitalize on global interest in South Korean military aircraft, targeting 65% domestic parts procurement through collaboration with approximately 600 local companies.

Moreover, KAI has further strengthened its international footprint by partnering with Wojskowe Zakłady Lotnicze-2, a subsidiary of Poland’s PGZ defense group, to establish a robust support system for FA-50s, underscoring its commitment to global aerospace leadership.