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KAI Denies Reports of Export Risk to KF-21 Over Shield AI Agreement

Business / Kim Jisun / 05/19/2025 03:35 AM

Photo = KAI

 

 

[Alpha Biz= Kim Jisun] Korea Aerospace Industries (KAI) has firmly denied recent media reports claiming that its agreement with a foreign company could seriously hinder the export of its KF-21 fighter jet, stating that the allegations are entirely unfounded.



In an official statement released on May 17, KAI said, “The reported concerns over KF-21 export disruptions and claims of ₩10 billion in royalties are not true.”



A domestic media outlet recently raised concerns that KAI’s contract with U.S.-based Shield AI for artificial intelligence (AI) software might jeopardize the export prospects of the KF-21. The report suggested that using Shield AI’s software could incur a royalty fee of around 10%, potentially resulting in losses with each unit sold. It also mentioned the possibility of legal disputes over intellectual property rights.



KAI refuted these claims, clarifying, “The AI pilot being developed by KAI is not intended for use on the KF-21. It is designed for integration into a domestically developed multipurpose unmanned aircraft. The software from Shield AI is being used only as a benchmark for evaluating our own AI pilot.”



The company further stated, “There is no clause in our contract with Shield AI requiring a 10% royalty fee.”



Regarding claims that the contract was rushed in just two months, KAI responded, “This is inaccurate. The AI pilot development project began two years ago and has involved ongoing discussions with various global AI companies.”



The company also dismissed allegations of external pressure or coercion during the contract process. “The domestic company mentioned in the report holds exclusive local distribution rights for Shield AI and participated in the negotiations as part of standard procedures,” KAI said.



KAI also denied any internal opposition from its legal, audit, or procurement teams. “The matters referenced were part of a standard risk assessment conducted before investment decisions and were resolved through official procedures after collecting all relevant opinions,” the statement concluded.

 

 

 

AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)

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