Hanwha, Korea Aerospace Sign $1.65B in KF-21 Contracts for Engines, 20 New Jets

South Korea has approved a major step in its KF‑21 Boramae fighter jet program with fresh contracts worth a combined 2.22 trillion won (nearly $1.65 billion) awarded to Hanwha Aerospace and Korea Aerospace Industries (KAI) by the Defense Acquisition Program Administration (DAPA).

Hanwha Aerospace signed a follow-up deal worth 623.2 billion won ($459 million) to supply over 80 F414 engines for the first mass production batch of KF‑21 fighters. This follows a previous contract worth 556.2 billion won ($410 million) signed last year, bringing the total value of the engine deal to 1.1794 trillion won ($860 million). Deliveries will continue through December 2028.

The agreement includes full logistics support, including spare parts, maintenance manuals, and on-site technical services. The F414 engines are built using heat-resistant, lightweight materials designed to perform in extreme combat environments.

In support of the engine program, Hanwha recently completed a 16,529-square-meter smart factory, funded by a 40 billion won ($29 million) investment, to produce F414 engines and develop future propulsion technologies.

Korea Aerospace Industries (KAI) also signed a new contract with DAPA valued at 2.39 trillion won ($1.76 billion) to deliver an additional 20 KF‑21 jets. This builds on a previous 1.96 trillion won ($1.44 billion) agreement signed in June 2024 for the first batch of 20 aircraft, completing the 40-jet order.

Deliveries are set to begin in the second half of 2026, with full system development expected to conclude by that time. The new deal includes logistics support such as technical manuals and training.

The KF‑21 program began in 2015 as a joint development with Indonesia, aimed at replacing South Korea’s aging F‑4 and F‑5 fleets. Since the maiden flight of the first prototype in July 2022, six aircraft have undergone flight testing.

By 2028, South Korea aims to have all 40 KF‑21 fighters delivered and operational, each powered by domestically assembled F414 engines.