Ministry of Trade, Industry and Energy

Trade, Industry and Energy Minister Dukgeun Ahn visited the Korea Aerospace Industries (KAI) headquarters in Sacheon on April 18 to inspect the production site of FA-50s and the Korean Utility Helicopter (KUH) Surion and discussed export issues with defense industry representatives.

 

Inking over USD 30 billion in business deals over the last two years, the domestic defense industry is leading Korea’s sprint towards this year’s total export target of $700 billion.

 

Based on competitive pricing and after-sales support, KAI has supplied 220 aircrafts, including FA-50s, to countries like Indonesia and Poland. Following the deal sealed with Malaysia on 18 FA-50s last year, KAI is eyeing exports to Africa and other new markets. First developed in 2013 for the purpose of replacing the aging fleet of military helicopters, the Surion is looking forward to taking flight in the Middle Eastern markets this year.

 

Along with the defense budget beef-up across major countries, the defense market is forecast to burgeon into a KRW 900 trillion market by 2027 and the Government plans to provide sweeping support to Korea’s defense industry in attaining this year’s $20 billion target through stronger trade financing and overseas marketing assistance. Measures will include injecting more than 10 trillion won in trade financing for defense exports and global bid projects, expanding the number of defense hub trade centers around the world, hosting trade shows, and pouring over 400 billion won this year alone into the research and development of advanced defense materials, parts, and equipment. Moreover, with a 29-billion won funding for military advancements like the single-seat FA-50 for increased range, the Government will support global market penetration and export portfolio diversification to include light armed helicopters and next-generation fighter aircrafts like the KF-21.