KAI secures second W2.4tr KF-21 deal with Korea’s defense agency

Korea Aerospace Industries has signed an additional KF-21 supply agreement worth 2.39 trillion won ($1.76 billion), selling 20 more of South Korea’s next-generation fighter jets.

According to the Defense Acquisition Program Administration on Friday, KAI is poised to deliver 20 KF-21 Boramae jets in addition to the first contract for the initial production of 20 units signed in June last year. This deal also includes providing technical manuals, education and follow-up logistical support for the jets.

The KF-21 is Korea’s first domestically developed 4.5-generation fighter jet, which will be introduced to the Air Force starting in the second half of 2026. Historically, the country has relied on foreign military technology — predominantly from the US. The jet is set to replace older aircraft, including the F-5, F-4 Phantom II, KF-16 and F-15K, and bolster Korea’s air power.

Powered by two General Electric F414 engines, the jet can reach up to Mach 1.8 —approximately 2,200 kilometers per hour — and support a wide range of weapons such as air-to-air missiles, precision-guided bombs and a cannon. DAPA recently announced that it carried out a successful flight test of a domestically developed long-range air-to-surface guided missile, set to be integrated into the KF-21, highlighting the jet’s deep-strike capabilities.

The KF-21 also shows potential for exports to Indonesia, the UAE and other countries. Notably, Indonesia is a partner in the KF-21 fighter jet program and recently finalized a deal with Korea to fund 600 billion won as a contribution.

“The KF-21 symbolizes the remarkable growth of Korea’s formerly nascent aerospace industry,” stated a KAI official. “We are committed to enhancing our Air Force’s capabilities and contributing to advancing the aerospace industry.”

Meanwhile, DAPA signed an additional 623.2 billion won engine supply agreement with Hanwha Aerospace, a subsidiary of Hanwha Group, raising the total contract value to 1.18 trillion won. Its sister company, Hanwha Systems, also finalized a deal valued at 124.8 billion won for the remaining supply of AESA radars.