KAI chief addresses Korea-Indonesia fighter jet project partnership challenges

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KAI chief addresses Korea-Indonesia fighter jet project partnership challenges

Published: 22 May. 2025, 12:53 Updated: 23 May. 2025, 13:52

Audio report: written by reporters, read by AI

Kang Goo-young, CEO of Korea Aerospace Industries, speaks during an interview with the Defense Ministry’s joint press corps at the LIMA 2025 defense exhibition in Langkawi, Malaysia, on May 21. [KOREA AEROSPACE INDUSTRIES]

[INTERVIEW]

The partnership between Korea and Indonesia in developing the KF-21 Boramae fighter jet is critical for accessing broader Southeast Asian defense markets, according to Kang Goo-young, CEO of Korea Aerospace Industries (KAI).

Speaking to reporters on Wednesday at the Langkawi International Maritime and Aerospace Exhibition 2025, Kang addressed recent tensions between the two countries stemming from an attempted unauthorized transfer of KF-21 data by Indonesian personnel.

The KF-21 Boramae development project was first launched in 2015, with Indonesia joining in 2016. The project aims to jointly develop next-generation supersonic fighter jets that would replace the two countries' aging fighters.

He expressed concern that the data leak incident, if allowed to escalate into an emotional dispute with Indonesia, could negatively impact the KF-21’s prospects in Southeast Asia.

“I hope the matter is resolved as soon as possible within the framework of the law,” Kang said. “Cooperation with Indonesia on the KF-21 is important for expanding into Southeast Asia, including markets like Malaysia.”

Indonesia has adopted a passive stance on the KF-21 project since February last year, when the two countries fell out over a possible security breach of Korean confidential data by Indonesian nationals.

At the time, Indonesian engineers were caught attempting to take classified KF-21 data out of Korea using an unauthorized USB device. Five individuals still remain under investigation and are barred from leaving Korea, fueling diplomatic strains.

In an effort to keep the partnership on track, Korea reduced Indonesia’s cost-sharing obligation for the KF-21 development from 1.6 trillion won ($1.2 billion) to 600 billion won. However, Jakarta has not reciprocated with any substantive engagement. Revising the cost-sharing agreement would require formal amendments to the contract, which Indonesia has said it cannot pursue until the travel bans are lifted and the related legal issues are resolved.

Kang emphasized the need for a political and diplomatic solution.

“We should overcome these disputes in consideration of our national interest,” he said, adding that KAI has submitted a petition to investigative authorities requesting leniency. The petition reportedly argues that the data in question likely does not contain core technological information.

The following interview has been edited for length and clarity.

Kang Goo-young, CEO of Korea Aerospace Industries, far left, explains the domestically developed KF-21 fighter jet to Malaysian Prime Minister Anwar Ibrahim, second from left, during the LIMA 2025 defense exhibition in Langkawi, Malaysia, on May 20. [KOREA AEROSPACE INDUSTRIES]

Q. Why do you believe resolving the KF-21 issue with Indonesia could open up new opportunities in the Southeast Asian market?

A. Southeast Asian countries may not identify a single adversary, but many cite China as a regional threat. In the past, China posed maritime threats using ships, but now it is projecting power through aircraft carriers and airspace. This means countries like Indonesia, the Philippines and Malaysia need high-performance fighter jets. These countries want the F-35, but U.S. export controls make acquisition difficult. That opens the door for the KF-21.

If the joint KF-21 development with Indonesia fails, do you believe that will impact efforts to expand into other countries?

Islamic nations tend to have strong ties with one another. Indonesia has recently shown signs of joining Turkey’s next-generation fighter program, the KAAN. If Malaysia were to join as well, that would be a scenario we hope to avoid.

There is speculation that Indonesia may be trying to withdraw from the KF-21 joint development. What is your view?

Indonesia still has about 200 billion won remaining in its cost-sharing obligations — 100 billion won this year and another 100 billion won next year. As far as I know, the 100 billion won for this year has already been allocated in their budget. I believe that this is a sign that they are going to pay whenever the matter is solved, and that they are not going to pull the plug. They’re watching the development of the KF-21 progress steadily, so I don’t think they can easily walk away from the project.

The first KF-21 mass production unit under assembly [DEFENSE ACQUISITION PROGRAM ADMINISTRATION]

Has Malaysia also shown interest in the KF-21?

A high-ranking Malaysian official visited the KAI booth yesterday and asked how the KF-21 compares to China’s J-10. I told them, “They’re not comparable.” The J-10 may be cheaper, but it has frequent accidents and is not reliable enough to serve as a combat aircraft. The question may have been prompted by recent reports that a Chinese-made J-10 used by Pakistan shot down an Indian Rafale fighter made by France.

I told the official that compared to other 4.5-generation fighters like the Rafale and Eurofighter, the KF-21 can deliver 150 percent of the performance at 70 to 80 percent of the cost. When you add up all operational costs over a life cycle of around 30 years, the KF-21 offers significant cost competitiveness.

How has KAI’s reputation changed in Southeast Asia in recent years, especially regarding KAI's exports of the T-50 and FA-50 to Indonesia, Thailand and the Philippines in the 2010s?

Some of the pilots who trained on our aircraft have now become generals, and they are placing their trust in KAI’s technological capabilities. We are gradually breaking into the Southeast Asian fighter jet market, which had long been firmly divided among the United States, Europe and Russia.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY LEE KEUN-PYUNG [[email protected]]