Photo = Yonhap news

 

 

[Alpha Biz= Kim Jisun] Shares of Korea Aerospace Industries (KAI) and Hanwha Aerospace closed higher on June 26 following the announcement of major contracts tied to the production of South Korea’s next-generation fighter jet, the KF-21 Boramae.



According to the Korea Exchange, KAI’s stock rose 5.34% to KRW 94,700, while Hanwha Aerospace gained 2.57%, closing at KRW 878,000.



KAI announced on the same day that it has signed a final production contract with the Defense Acquisition Program Administration (DAPA) to supply an additional 20 KF-21 fighters. The contract, valued at KRW 2.39 trillion (approx. USD 1.7 billion), also includes follow-on logistical support. This deal completes the initial batch of 40 jets approved for delivery to the Republic of Korea Air Force by 2028 under a plan confirmed by the Defense Project Promotion Committee in March 2023.



The first production contract for 20 units was signed in June last year. With this latest agreement, KAI has secured the full order for the 40 Block 1 units of the KF-21.



Hanwha Aerospace also finalized a KRW 620 billion (approx. USD 450 million) contract with DAPA to supply 40 F414 engines for the second batch of KF-21s. Each aircraft is powered by two F414 engines, meaning Hanwha Aerospace will produce 80 engines in total to support the full 40-aircraft production run by KAI.



The KF-21 Block 1 models currently in production are equipped with basic flight capabilities and air-to-air armaments. The first 20 jets are scheduled for delivery by 2027, with the remaining 20 to be delivered by 2028. Development and production of the Block 2 variant, which will be capable of deploying air-to-ground missiles, are also underway. A total of 80 Block 2 aircraft are expected to be produced by 2032, bringing the total KF-21 fleet to 120 units.



This milestone further underscores South Korea’s commitment to enhancing its domestic defense manufacturing capabilities and advancing indigenous fighter jet technology.

 

 

 

[ⓒ AlphaBIZ. 무단전재-재배포 금지]