South Korea’s KAI signs $1.4 billion deal to launch mass production of homegrown KF-21 fighter jets

Nine years after the development of South Korea’s KF-21 Boramae began, the Korean government finalized a significant deal with Korea Aerospace Industries (KAI) for the production of 20 fighter jets, marking a crucial step in enhancing the country’s defense capabilities.

The Defense Acquisition Program Administration (DAPA), South Korea’s state-run arms procurement agency, awarded KAI a 1.96 trillion won ($1.41 billion) contract for the Block 1 batch of the KF-21 Boramae (”Falcon”) fighter jets. These platforms are considered 4.5-generation aircraft, equipped with state-of-the-art avionics and advanced materials.

KF-21 Boramae fighter jet resembles the design of the F-35A. The KF-21, a homegrown supersonic jet, is set to replace the South Korean Air Force’s aging F-4 Phantom II fighter-bombers and F-5 supersonic fighter jets. The first aircraft from this new series will be delivered by the end of 2026, with the final delivery scheduled for August 31, 2027.

“Despite many challenges and difficulties, the KF-21 system development project was able to reach mass production stably, thanks to the solid cooperation of related organizations,” said KAI President Kang Goo-young.

“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,” he further emphasized.

In a filing to the South Korean securities exchange on June 25, KAI said that the contract value “includes approximately KRW408.1 billion of investment” for development of the aircraft. The KF-21’s current level of development is at 80% and the development is scheduled to be completed in 2026, according to KAI.

Hanwha Aerospace to supply KF-21 fighter jet engines

Hanwha Aerospace has signed a deal valued at US$401 million with South Korea’s Defense Acquisition Program Administration to deliver more than 40 engines for the country’s KF-21 fighter aircraft by the end of 2027. Hanwha Aerospace will deliver F414 engines and spare modules for the KF-21, as well as provide engine maintenance manuals and on-site technical support, along with the supplied engines which will be installed in the first batch of KF-21s.

The company said the “contract serves as a stepping stone for Hanwha Aerospace’s plans to develop next-generation engine technologies [and we are] actively pursuing research and development in sixth-generation engine technology.”

Key features of KF-21 Boramae

  • KAI KF-21 is a 4.5-generation fighter aircraft.
  • KF-21 integrates advanced technologies, including an AESA radar, a sophisticated electronic warfare suite.
  • It will also feature targeting and reconnaissance pods, with 65% of its components locally designed in South Korea. However, much of its weaponry would come from MBDA.
KF-21 Boramae specifications
Max Thrust:44,000 lbs
Ferry Range:1,550 nautical miles
Max Speed:1,400 mph
Max. Payload:17,000 lbs
MTOW:56,400 lbs
Generation:4.5 gen

The KF-21 project, launched in 2015 in collaboration with Indonesia, aimed to develop a next-generation supersonic fighter jet using South Korea’s homegrown technology for key components. However, Indonesia did not fulfill its share of the project’s cost, leading South Korea to accept a reduced contribution from its partner. Despite this setback, the development of the KF-21 continued, reaching an 80% completion rate.

The aircraft demonstrated its performance and stability through initial test flights, including successful air-to-air refueling and firing of the Meteor, a European active radar-guided beyond-visual-range air-to-air missile.

In March 2023, the KF-21 prototype No. 2 successfully tested the separation of the Meteor missile, and in March 2024, it conducted an air-to-air refueling drill, showcasing the aircraft’s advanced capabilities.

KAI has been preparing for the mass production of the KF-21 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 from within South Korea by collaborating with about 600 local companies.

The KF-21 Boramae received significant recognition in the 4.5-generation fighter jet market due to its incorporation of technologies from the Fourth Industrial Revolution, such as artificial intelligence and big data. KAI, which previously sold KF-50 light fighter jets to Poland and Malaysia, aims to leverage the growing global interest in South Korean military aircraft to export the KF-21.

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