South Korea's KAI signs $1.41 billion deal for 20 KF-21 fighter jets

South Korea signs $1.41 billion contract with Korea Aerospace Industries for 20 KF-21 Block 1 fighter jets, with plans for more.

In a significant development, the South Korean government has finalized a deal with Korea Aerospace Industries (KAI) for the production of 20 KF-21 Boramae fighter jets. It marks a major milestone in the nine-year-long development of the indigenous fighter aircraft.

Key Details of the Deal

  • The contract, valued at 1.96 trillion won (U.S. $1.41 billion), has been awarded to KAI by the Defense Acquisition Program Administration.
  • The first batch, known as Block 1, is considered to be 80% complete and is categorized as 4.5-generation aircraft.
  • The delivery of the first KF-21 aircraft is scheduled by the end of 2026, with the final aircraft from this series expected by Aug. 31, 2027.

Future Prospects and Expansion

KAI has outlined its plans for the future, indicating that it intends to manufacture 40 KF-21 Block I and 80 Block II aircraft. However, the initial order from the government-backed Korea Institute for Defense Analyses stands at 20, with a possibility of an additional 20 next year, subject to performance verification.

Furthermore, the Block II, earmarked for development from 2026 to 2028, will see enhancements such as air-to-ground capabilities and an expanded performance envelope, with approximately 2,200 test sorties planned by 2026.

Local Collaboration and Replacement Strategy

KAI has been proactively gearing up for the production contract by establishing a supply chain involving 600 domestic companies, building production facilities, and acquiring tools.

Notably, the KF-21 is set to replace South Korea's F-4 and F-5 fighters, with the retired F-4 being phased out earlier this month.

Additional Defense Contracts

Besides the KF-21 deal, there have been other significant contracts in the defense sector. Hanwha Systems secured a contract with DAPA for 20 active electronically scanned array radars, while Hanwha Aerospace inked a deal worth 556 billion won to produce 40 General Electric F414-GE-400 engines along with spares for the initial fleet of KF-21s.

Technological Advancements and Future Endeavors

Hanwha Aerospace's capacity to manufacture 300 engines annually is set to be realized through a new $30 million facility in Changwon, with the first engine expected to be ready by the end of 2025.

Furthermore, KAI and Hanwha Aerospace have expressed their aspirations to delve into sixth-generation engine technology and beyond, signaling a strong focus on innovation and technological advancement.

KAI has also disclosed its intentions to "further develop sixth-generation manned and unmanned system technology," highlighting the country's strategic vision in the defense and aerospace domains.

Share news

Copyright ©2025 All rights reserved | PrimeAi News

We use cookies to improve your browsing experience, offer personalized ads or content, and analyze our traffic. By clicking 'Accept', you consent to our use of cookies.

Cookies policy.