KAI to focus on Egypt project after FA-50 export deal with Malaysia

The Korea Times

The Korea Times

National

Sat, September 23, 2023 | 12:39

Defense

KAI to focus on Egypt project after FA-50 export deal with Malaysia

Posted : 2023-03-01 16:28

Updated : 2023-03-02 08:31

Korea Aerospace Industries CEO Kang Gu-young, fourth from left, smiles as he speaks to members of the Black Eagles, the flight display team of the Korean Air Force, at the exhibition hall of the Avalon Airshow at Avalon Airport, near Geelong, Australia, Wednesday. Courtesy of Republic Of Korea Air Force

'Geopolitical climate reshapes global arms procurement market in favor of Korea'

By Jung Min-ho

GEELONG, Australia ― A recent deal to export 18 FA-50 domestically-developed light attack fighters to Malaysia has paved the way for Korea Aerospace Industries (KAI) to create other stories of success as it aims to continue to expand its global reach.

The next goal of the nation's sole jet maker this year is to win the preferred bidder status for Egypt's project to locally produce jet trainers and lightweight fighters in collaboration with a foreign company, KAI CEO Kang Gu-young told reporters at its promotion booth set up for the Avalon Airshow here Wednesday.

KAI will be the company's first foray into Africa's military aircraft market if it inks a contract to export more than 100 T-50 Golden Eagle planes, a family of its supersonic jet trainers and light combat aircraft, over rival bidders such as China's L-15 and Italy's M-346.

"Egypt's strategic geographic location (between the northeast corner of Africa and Western Asia) would then open many other doors of opportunity," Kang said.

KAI's ultimate objective is to export its aircraft to the United States, a market for the world's greatest jet makers. That would elevate KAI's status and provide momentum for its next vision of becoming a key player in the international aerospace industry, Kang added.

This photo provided by Korea Aerospace Industries shows two FA-50 light combat jets.

Signs indicate that the prospects of the Egyptian deal are bright. Invited by its government, the Black Eagles, Korea's aerobatic team, flied over the pyramids in the first such performance by a foreign military during the Pyramids Air Show 2022 in Giza.

In recent years, many countries around the world have shown great interest in what KAI can currently offer and also in what it could in the future, Kang said. One of such projects is the KF-21, an advanced multirole combat jet under development. Following its successful maiden flight last year, the company plans to begin mass production in four years, which is expected to attract considerable attention at a time when many governments are building up their militaries amid Russia's war in Ukraine.

The war is reshaping the global arms procurement market in significant ways, Kang said.

"First, the war has demonstrated the importance of superior air forces, including unmanned ones like drones. It also has raised many questions about the Russian-made weapons, which have prompted many countries to consider procuring weapons from other sources," he said.

Yet they have few options to choose as a handful of countries have dominated the industry, with the U.S., Western Europe, Russia and China accounting for most of it. This provides an opportunity for Korean defense companies as some governments are questioning whether it would be safe to depend completely on just one or two countries for their defense.

"With the proven quality of its aircraft and other military hardware, Korea is in a favorable position as some countries are trying to diversify their sources. One of the countries that made a prompt decision to do so was Poland," Kang said. "Many countries in Southeast Asia and the Middle East are concerned about the same issue. In that sense, the deal signed in Malaysia was meaningful … We will continue to work to build trust and expand our roles."

On the previous day, KAI announced that it signed a 130 billion-won ($105 million) contract to supply plane parts to Boeing's B767, B767-2C, B777, B777X and B787 models for eight years from this year.

mj6c2@koreatimes.co.kr