The KF-21 Boramae, South Korea’s first domestically developed fighter jet
South Korea plans to accept Indonesia’s request to cut its share of payments for a joint fighter jet development project to one-third of the originally agreed amount after Jakarta repeatedly reneged on its promise to pay in full.
The Defense Acquisition Program Administration (DAPA), Korea’s state-run arms procurement agency, on Wednesday confirmed that Indonesia recently proposed cutting its payments for the KF-21 project.
Indonesia said it would receive fewer technology transfers from Korea as part of its move to cut its financial contribution, according to the agency.
“Indonesia has proposed to pay 600 billion won ($440 million) by the end of 2026. We are positively considering accepting the proposal,” the DAPA said in a statement. “We’re also working on a plan to adjust the scale of technology transfers in line with the reduced financial contribution.”
A DAPA official said: “A continued deadlock over Indonesia’s failed payments will affect the KF-21 fighter jet development schedule, which in turn will delay the planned deployment of new fighter jets.”
The KF-21 Boramae
The agency said it will likely make the final decision at a DAPA review committee meeting later this month after consultations with related ministries, including the Defense Ministry and the Finance Ministry.
KOREA’S HOMEGROWN TECH
The KF-21 is a joint project between Korea and Indonesia to develop a next-generation supersonic combat plane with Korea’s homegrown technology for key components.
In 2016, Indonesia agreed to shoulder some 1.7 trillion won, or about 20% of the multi-billion-dollar project in return for a deal for the Southeast Asian country to receive a prototype of the fighter jet and technical support for the local production of 48 units in Indonesia.
The Korean government was slated to shoulder 60% of the total cost while Korea Aerospace Industries Ltd. (KAI), Korea’s sole military aircraft maker, said it would finance the remaining 20%.
The amount for Indonesia was later set at 1.6 trillion won. Jakarta has so far paid some 300 billion won and has missed interim payment deadlines several times.
This undated photo by the DAPA shows a KF-21 fighter jet undergoing an air-to-air refueling drill over waters off South Korea’s southern coast
Industry officials said Korea has decided to accept Indonesia’s proposal partly due to the lower-than-expected overall development costs.
The DAPA initially estimated the entire KF-21 project cost at 8.1 trillion won but now expects the expenditure to be around 7.6 trillion won after rigorous cost-cutting efforts.
“Even with the reduced contribution from Indonesia, we expect the Korean side to shoulder an extra 500 billion won,” said the DAPA official.
NEXT-GENERATION FIGHTER JET FOR KOREA’S AIR FORCE
In April 2021, Korea unveiled a prototype of the KF-21 fighter jet, nicknamed Boramae, at KAI in Sacheon, South Gyeongsang Province.
A KF-21 fighter jet is on display at ADEX Seoul 2023 in October 2023
Korea plans to gradually replace the country’s aging fleet of F-4 and F-5 fighters, third-generation US-designed jets introduced in the 1960s.
Once fully operational, the KF-21 combat plane, dubbed a 4.5-generation jet because of the lack of a stealth function, is expected to replace Korea’s fourth-generation F-16s and F-15Ks.
With a maximum payload of 7,700 kilograms, the new warplane will have 10 pods for air-to-air missiles and other weapons, capable of flying at 2,200 kph with a flying range of 2,900 km.
Last year, the KF-21 successfully made its first supersonic flight over Korean skies.
The DAPA said in January the KAI will likely begin mass production of the new warplane this year for the first delivery to the Korean Air Force in the second half of 2026.
“We will keep proving the KF-21’s performance through various flight assessments, including aerial refueling and air-to-air missile launch tests,” said DAPA Minister Eom Donghwan.
By Dong-Hyun Kim
3code@hankyung.com
In-Soo Nam edited this article.
