KAI finalizes fighter jet deal with Malaysia

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KAI finalizes fighter jet deal with Malaysia

Published: 25 May. 2023, 18:10 Updated: 25 May. 2023, 19:30

FA-50 light combat air carft landing at an air base in Cheongju, North Chungcheong, on May 12. [KOREA AIR FORCE]

Korea Aerospace Industries (KAI) finalized its deal with the Royal Malaysian Air Force earlier this week to deliver 18 FA-50M light combat aircraft.

The signing ceremony was the highlight of the Langkawi International Maritime and Aerospace Exhibition in Malaysia on Thursday.

The contract is estimated to be worth around $920 million.

"I thank the Royal Malaysian Defense Ministry for choosing FA-50M," KAI CEO Kang Goo-young said during Thursday's event. "We will do our best to deliver the aircraft within the deadline and contribute to the Malaysian Air Force's defense capability."

The ceremony with Kang and Korean Defense Minister Lee Jong-sup in attendance, along with Lee's Malaysian counterpart Dato' Seri Utama Haji Mohamad bin Haji Hasan.

In a statement, KAI said it hopes the latest contract will lead to more arms sales, including additional FA-50s, the 4.5 generation fighter jet KF-21, KUH-1 Surion helicopters and light-armed helicopters.

KAI especially hopes to secure the sales of 18 additional FA-50s, which the Malaysian military plans to replace.

Malaysia's air force in 2018 launched a "Capability 55" plan to acquire 36 new light combat aircraft and advanced trainer aircraft.

"As the [Malaysian Air Force] plans to retire its main fighter jets F/A-18D and SU-30MKM and replace them with new models, [there is an] opportunity [to sell] FK-21," KAI said in a statement.

The Korean company also said it is currently negotiating with Egypt to sell 36 FA-50s.

KAI noted that the FA-50M contract with Malaysia could help secure a larger foothold in the Asean defense market, including Indonesia, the Philippines and Thailand and even expand opportunities to other regions, including the United States.

The company also mentioned the possibility of the U.S. Navy seeking 500 trainer jets in two to three years.

"If T-50 enters the U.S. market, we would be able to secure 50 percent of overseas trainer jets and light combat aircraft market," the company said.

Korea Aerospace Industries CEO Kang Goo-young, left, shakes hand with Malaysian Defense Ministry Secretary General Dato’ Sri Muez bin Abd Aziz with the contract on delivering 18 FA-50M light combat aircraft at the Langkawi International Maritime and Aerospace Exhibition (LIMA) in Malaysia. Korean Defense Minister Lee Jong-sup, second from left, and Malaysian Defense Minister Dato' Seri Utama Haji Mohamad bin Haji Hasan, third from left, also attended the signing ceremony. [KOREA AEROSPACE INDUSTRIES]

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]