Boeing’s Korean supplier targets UAV market with guided weapons

Boeing Co.’s leading South Korean contractor aims to develop unmanned aerial vehicles with guided weapons, given the rapidly growing military drone market based on artificial intelligence technology.

Firstec Co., South Korea’s defense maker specializing in aerospace and guided munition, plans to join hands with its UAV affiliate Uconsystem Co. for the business, Firstec CEO Son Kyeong Seok said on Monday.

“The UAV market is expected to expand as AI is rapidly growing,” Son said. “We will try a product combining guided weapons and UAVs to play a role of a game-changer.”

The goal came as the country is trying to develop the defense industry as a new growth engine for export-dependent South Korea.

Last year, the sector logged record exports of $17 billion as major domestic companies signed deals worth 20 trillion won ($15.3 billion) with Poland.

FACTORY EXPANSION

Firstec was a beneficiary from the mega contracts with sales up 17% to 160.2 billion won in 2022 as it supplied panels for ground equipment, wire harnesses for fighter jets and other components to be delivered to Poland. The company, which started the defense business with 20-millimeter-Vulcan automatic cannons, manufactures key parts for the K9 self-propelled howitzer produced by Hanwha Aerospace Co.

Firstec has been expanding its plant in Changwon, about 400 kilometers southeast of Seoul, by larger than initially planned to meet growing demand since last year.

“About 500 billion won in order backlogs was added at once to the existing 600 billion won,” Son said, emphasizing that the company has secured work for the next seven to eight years.

Firstec also supplies wire harnesses, assemblies of electrical cables of wires for signals of electrical power transmission, for the Bell Boeing V-22 Osprey, a US tiltrotor military aircraft.

The company received a gold Boeing Performance Excellence Award in 2021 and 2022, the highest prize by the world’s top aerospace maker for suppliers. Boeing evaluates all its suppliers based on key elements such as quality, delivery, cost competitiveness and service every year.

“The world is recognizing the competitiveness of South Korean defense makers,” Son said.

Write to Hyung-Chang Choi at calling@hankyung.com
 
Jongwoo Chon edited this article.