Korean Air and Korea Aerospace Industries will compete for an 8.5 trillion won ($8.3 billion) fighter jet project, the nation’s arms procurement agency said Tuesday.
The lucrative defense project is designed to develop the country’s mid-level jets to replace the aging F-4s and F-5s.
“Our own technology will enable the military to utilize the fighter jets for the next 30 years through continuous product improvement,” a Korean Air official said.
The country’s largest airliner teamed up with European aerospace giant Airbus Defense and Space while South Korea’s sole aircraft manufacturer Korea Aerospace Industries, or KAI, joined up with Lockheed Martin to meet a requirement of the bid that local companies partner with foreign firms in order to secure technological assistance.
The Defense Acquisition Program Administration plans to announce the preferred bidder in March after evaluating the two proposals. The winner of the project will be decided in July.
Korean Air has technological prowess in producing jets, having made the 500MD, the first helicopter made in Korea, and the F-5 fighter plane.
The company also said that its partner Airbus showed a strong will to contribute to the development of the country’s aerospace industry.
KAI boasts of having developed the T-50 Golden Eagle supersonic trainer and the country’s utility helicopter, the Surion.
“By winning this bid, KAI will come one step closer to its goal of becoming one of the world’s top 15 aerospace companies,” a KAI official said.
