'A real chance of securing contracts': New U.S. policy spells opportunities for K-aviation

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'A real chance of securing contracts': New U.S. policy spells opportunities for K-aviation

Published: 13 May. 2025, 09:38 Updated: 13 May. 2025, 18:52

Audio report: written by reporters, read by AI

A U.S. Marine Corps F-35B fighter jet flies during Osan Air Power Day 2025 at Osan Air Base in Pyeongtaek, Gyeonggi, on May 11. [YONHAP]

Korea's aircraft maintenance, repair and overhaul (MRO) industry is gaining prominence as the United States seeks to bolster its military readiness through partnerships with allied nations.

The move follows growing interest from the U.S. Department of Defense in outsourcing military aircraft maintenance to partner countries.

The two countries discussed expanding cooperation in the MRO sector at the 26th Korea-U.S. Integrated Defense Dialogue (KIDD) in Washington from May 1 to 2, building on the Regional Sustainment Framework (RSF) the Pentagon announced in May 2024.

The RSF aims to enable quicker redeployment of military assets by conducting MRO operations at strategic allied locations near operational theaters. This framework reduces time and costs while increasing operational continuity compared to performing MRO work in the continental United States.

U.S. defense officials earlier this year also visited Korean facilities, operated by Hanwha Aerospace, Korea Aerospace Industries and Korean Air, to assess their capabilities.

A U.S. Pacific Air Forces F-16 fighter jet performs an aerial demonstration during the ″Osan Air Power Day 2025″ at Osan Air Base in Pyeongtaek, Gyeonggi, on May 11. [YONHAP]

“Thanks to Korea’s independent defense policy, aircraft technology has accumulated to a level that is attracting attention from the United States,” said Oh Kyung-won, an aviation maintenance professor at Howon University. “If Korea becomes a key MRO hub for the U.S., the project will be commercially viable and offer an opportunity to further advance Korean aerospace technology.”

Democratic Party presidential candidate Lee Jae-myung also pledged to "strengthen Korea’s competitiveness in the MRO industry" on Saturday.

The aviation MRO sector, which includes military and civilian aircraft, has significant growth potential. Samjong KPMG expects the global aviation MRO market to grow 33.4 percent from $93.9 billion in 2023 to $125.3 billion by 2033.

Korea’s domestic MRO market is projected to reach 4.2 trillion won ($3 billion) this year, accounting for only 3.2 percent of the global share but seen by analysts as a base for growth.

Growing in particular is the military aircraft MRO sector.

Market research firm Mordor Intelligence estimates the 2025 global military MRO market at $42.49 billion, with projections reaching $48.81 billion by 2030.

“As passenger and cargo volume increases in Asia, the region’s aviation MRO market is growing rapidly," said Hurr Hee-young, president of Korea Aerospace University. "Korea has strong advantages due to its geopolitical location. In the military sector, domestic firms have decades of maintenance experience, which gives them a real chance of securing contracts.”

The aviation MRO industry is typically divided into four categories: airframe (fuselage and wings), engine (gas turbines), components (control, fuel, navigation and landing systems) and line maintenance (routine checks during operations).

Korean Air and KAI offer general MRO services in Korea while Hanwha Aerospace specializes in engine maintenance.

Korean Air has provided MRO for about 3,700 U.S. military aircraft stationed in Korea and Japan since 1978.

Hanwha Aerospace, under license from General Electric, Rolls-Royce and Pratt & Whitney, has produced around 10,000 engines and performed maintenance on about 5,700 of them to date.

Aircraft engines that Hanwha Aerospace has produced since 1979 are on display by era at its Changwon Plant 1 in Changwon, South Gyeongsang. [HANWHA AEROSPACE]

Companies are now making bold investments to prepare for growing demand.

Korean Air is building a new 578 billion won engine maintenance facility on Yeongjong Island in Incheon with a total floor area of 140,200 square meters (1.5 million square feet).

Once complete in 2027, the facility will increase annual engine capacity from 100 to 360 units and expand its range from six engine types to nine.

Hanwha Aerospace is investing 59 billion won to expand its first manufacturing plant in Changwon, South Gyeongsang.

“If selected as an RSF partner, we will further expand our facilities,” a Hanwha Aerospace official said.

Korea Aerospace Industries’ MRO subsidiary, Korea Aviation Engineering & Maintenance Service, is also investing 248.1 billion won to expand its maintenance complex in Sacheon, South Gyeongsang.

Experts argue that Korea needs systematic government support to lead in this high-stakes industry.

Singapore, often cited as an exemplary model, has offered extensive research and development funding and aggressively attracted global investment, developing a large MRO cluster at its Changi Airport.

Over 130 global aviation companies, including Boeing, now conduct MRO operations in Singapore.

“The government should establish a central control tower that brings together scattered functions under the Ministry of Land, Infrastructure and Transport and the Ministry of Trade, Industry and Energy,” said Cheon Sang-pil, a military studies professor at Daejeon University. “We need strong tax incentives and simplified certification processes.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM HYO-SEONG, LEE SU-JEONG [[email protected]]