Update: KAI, Hanwha win deals to build more KF-21 fighters and engines

An initial batch of KF-21 fighter aircraft is scheduled to be delivered to the RoKAF by late 2026. (Korea Aerospace Industries)

Korea Aerospace Industries (KAI) and Hanwha Aerospace have won contracts worth more than KRW3 trillion (USD2.2 billion) to produce additional KF-21 fighter aircraft and its General Electric F414 engines for the Republic of Korea Air Force (RoKAF).

KAI said in a stock exchange filing on 26 June that its new deal, awarded by the Defense Acquisition Program Administration (DAPA), is worth KRW2.39 trillion and runs through December 2028. Hanwha Aerospace said its contract is valued at KRW623.2 billion and covers the licenced production of 40 additional F414 engines and related spare parts.

KAI did not disclose how many KF-21s it will build under the new contract, but it is likely to be 20. Each KF-21 is powered by two F414s.

Both contracts represent follow-on deals. In June 2024, KAI was awarded a KRW1.96 trillion contract to produce 20 KF-21 aircraft and Hanwha Aerospace won a KRW556 billion deal to build an initial 40 F414 engines.

Production of the first KF-21 started in July at KAI's Sacheon facility in Gyeongsangnam-do. The first aircraft reached its final assembly phase, in which it underwent fitment of its F414 engine and electronic systems, in May 2025.

The aircraft's active electronically scanned array (AESA) radar unit has also been developed and built locally by Hanwha Systems. Under another deal announced on 26 June, Hanwha Systems said it will produce an unspecified number of AESA radar units for the KF-21. The company said the contract is worth KRW2.8 trillion but did not provide details.