KAI inks deal to export 18 FA-50s to Malaysia

Korea Aerospace Industries Ltd. (KAI) has secured a deal to export eighteen FA-50 light fighter jets to Malaysia for a sum of $920 million (1.2 trillion won).

The contract was signed with Malaysia's Ministry of Defense and comes after a bidding process that involved six aircraft models, including KAI's FA-50, India's Tejas, Pakistan's JF-17, Russia's MIG-35, and Turkey's Hurizet.

The FA-50 was chosen after a last-minute competition with Tejas. KAI plans to include improved features such as aerial refueling and expanded armament. The initial deliveries are scheduled for 2026.

KAI's success in Malaysia is attributed to the high evaluation of its offerings in neighboring countries such as Indonesia, the Philippines and Thailand. This is the largest single contract since KAI entered the Southeast Asian market.

Malaysia also has the option to acquire an additional 18 aircraft of the same type, which would bring the total to 36 units. KAI has exported a total of 68 domestic aircraft, including the FA-50, KT-1, and T-50, to the Southeast Asian market.

KAI's CEO Kang Goo-young said that the company plans to expand exports of domestic aircraft to other countries, including Australia and the United States, beyond the Middle East and Africa.

"We will fulfill our role as a long-term defense cooperation partner with the government, as well as supporting the successful delivery and operation of the FA-50," he said.

A KAI official commented that the Asia-Pacific security belt centered on domestic aircraft has been firmly established, and the cooperation system between Korea and ASEAN is expected to be further strengthened.

Write to Seo-Woo Jang at suwu@hankyung.com