KF-X project will cost more than estimated

Gov’t to set up task force soon

By Jun Ji-hye

The government will likely have to spend more money than originally estimated on developing indigenous fighter jets by 2025 because developing core technologies jointly with foreign firms will incur additional costs, sources said Wednesday.

According to the Defense Acquisition Program Administration (DAPA), the government plans to spend 8.5 trillion won on the KF-X project, and an additional 10 trillion won to produce 120 jets.

However, the U.S. government refused to allow Lockheed Martin to transfer four core technologies related to its F-35 stealth fighters to Korea, which are crucial for the military here to develop its own jets.

Accordingly, the agency is seeking to domestically develop these technologies, or sign partnership contracts with other foreign companies for the development.

This will cause additional costs that may amount to tens of millions of dollars, the sources said.

As President Park Geun-hye gave her support to the project ― about which questions of feasibility have been raised ― saying that it was the country’s most important and should be completed as scheduled ― an overall re-examination of the plan, which critics have called for, seems unlikely.

The Ministry of National Defense said Wednesday that a task force in charge of the KF-X program will be set up under the direct control of the DAPA head by the end of this year.

The task force will be comprised of between 70 to 80 personnel, and its head will be chosen from among outside experts to enhance transparency.

The projected spending of 8.5 trillion won was calculated under the assumption that the nation could receive core technologies from Lockheed Martin ― the active electronically scanned array (AESA) radar, infrared search and track (IRST), electronic optics targeting pod (EOTGP) and radio frequency (RF) jammer.

Defense observers say that both domestic development and cooperation with foreign companies will cost more money.

A DAPA official said on condition of anonymity that some foreign companies including European firms are showing a great deal of interest in participating in the KF-X project, but it remains to be seen whether they will willingly hand over their technologies to Korea.

“Most foreign companies have accumulated expert skills related to fighter jets by investing an enormous sum of money,” he said. “They wouldn’t give such technologies to us for nothing.”

Domestic development is tough too.

The nation’s Agency for Defense Development (ADD) has been leading the development of the AESA radar since 2006 with defense firm LIG Nex1, but has yet to devise cooling technology to counter heat that the equipment generates.

The AESA radar is essential equipment that helps a pilot identify friend or foe in battle and finds targets on the ground. The DAPA said it will be able to complete the development by 2021.

President Park’s encouragement toward the project somewhat quieted mounting voices at the National Assembly for cutting the relevant budget for next year following the U.S. refusal.

The subcommittee of the Assembly Defense Committee is currently examining whether 67 billion won submitted by the Ministry of Strategy and Finance is reasonable to be earmarked next year for the KF-X project.

Before the President’s encouragement, some lawmakers at the committee signaled at cutting the money, questioning the reliability and feasibility of the project.

But now, DAPA cautiously expects the Assembly to decide to increase the budget for next year.

DAPA initially requested 161.8 billion won for the KF-X project next year, but the finance ministry cut it to 67 billion won in September.

Follow Jun Ji-hye on Twitter @TheKopJihye