KAI secures deal to export 18 FA-50 light fighters to Malaysia

South Korea’s sole military aircraft manufacturer Korea Aerospace Industries Ltd., (KAI) has finalized a contract to supply Malaysia with eighteen FA-50 light fighters, a deal that carries potential for future expansion. The FA-50, a multi-role aircraft modeled after the T-50 Golden Eagle advanced trainer aircraft, underscores KAI's expanding global footprint in the aerospace industry. 

The deal, which was concluded at the 2023 International Maritime and Aerospace Exhibition (LIMA), brings to an end three months of detailed discussions on the specifics of aircraft delivery and after-sales support. This followed the signing of a letter of acceptance (LOA) for the FA-50 export with the Malaysian Ministry of Defense.

High-ranking officials at the ceremony included South Korean Defense Minister Lee Jong-Sup, KAI's CEO, Kang Goo-young, and Malaysian Defense Minister Mohamad Hasan. The trio committed to fostering mutual cooperation in defense and security matters.

According to Minister Lee, the contract is poised to bolster defense ties between Korea and Malaysia. "This deal has the potential to positively influence not only our ongoing export relationship with Malaysia but negotiations with other nations as well," he stated.

The Minister emphasized that South Korean government regards defense export support as a high-priority policy area. It is focusing efforts on improving delivery schedules, easing regulations, guaranteeing financial support, and providing continual military assistance.

Malaysia intends to acquire an additional eighteen FA-50 units, which could potentially double the current contract to 36 units. If this subsequent procurement materializes, the total exports of KAI's domestically produced KT-1 and T-50 series aircraft may reach approximately 240 units globally.

Write to Dong-Hyun Kim at 3code@hankyung.com