Lee Hyo-jin covers the Bank of Korea, the banking industry and broader financial news. Her previous beats include foreign affairs, North Korea and general reporting on Korean society.
UAE shows high interest in KF-21 fighter jet
Azan Al-Nuaimi, in back seat, commander of the UAE Air Force Warfare Center, poses aboard a KF-21 fighter jet at the Korea Aerospace Industries (KAI) manufacturing plant in Sacheon, South Gyeongsang Province, Wednesday. Courtesy of KAI
By Lee Hyo-jin
Middle East arms deals could reshape Korea-Indonesia fighter jet venture
The United Arab Emirates' interest in the KF-21 fighter jet is drawing attention amid lingering uncertainty over Indonesia’s financial commitment to the joint development of Korea's first homegrown combat aircraft.
Some analysts suggest that Korea’s growing defense ties with the Middle Eastern nation could mark a turning point for its multibillion-dollar joint project with Indonesia, which has been plagued by Jakarta's payment delays and funding cuts.
According to the Defense Acquisition Program Administration (DAPA), a UAE military delegation led by Maj. Gen. Rashed Mohammed Al Shamsi, commander of the country's Air Force and Air Defense, met with DAPA chief Seok Jong-gun in Seoul, Thursday, to discuss defense cooperation.
The meeting followed the delegation's visit to KF-21 developer Korea Aerospace Industries' (KAI) headquarters in Sacheon, South Gyeongsang Province, the previous day. During the visit, Azan Al-Nuaimi, commander of the UAE Air Force Warfare Center, participated in a test flight to assess the fighter jet's capabilities.
A day earlier, the UAE officials held talks with Republic of Korea Air Force Chief of Staff Gen. Lee Young-soo, during which the two sides signed a letter of intent on comprehensive cooperation involving the KF-21 and agreed to hold regular discussions.
This marks the first time a Middle Eastern country has agreed to hold regular air force-to-air force talks with Korea.
"The UAE has shown growing interest in cooperation in the air force domain. The agreement outlines the UAE’s potential observation in future KF-21 training programs and visits to units that operate the fighter jet," a ROK Air Force official said.
It is not the first defense cooperation between the two nations. Earlier in 2022, the UAE decided to purchase Korea's Cheongung-II mid-range surface-to-air missile system worth 4 trillion won, becoming the first foreign country to buy Korea's domestically developed anti-missile system.
The UAE’s engagement in the KF-21 fighter jet comes as uncertainty lingers over Indonesia’s commitment to the joint development program, even as it nears completion and approaches the deployment phase.
Development of the cutting-edge jet is set to be completed in 2026, with deliveries to the ROK Air Force scheduled for later that year.
KF-21, right, and KF-16 fighter jets carry out a test flight over the Korea Aerospace Industries headquarters in Sacheon, South Gyeongsang Province, Feb. 19. Courtesy of Korean Air Force
When the KF-21 project was launched in 2015, Indonesia agreed to shoulder 20 percent of the 8.1 trillion won ($5.7 billion) development cost in exchange for 48 IF-X aircraft, or the Indonesian variant of the 4.5-generation fighter jet, to be produced through technology transfer.
But Jakarta’s involvement in the decade-long project has been uncertain.
It has so far contributed only around 300 billion won and has yet to offer a clear plan to settle its overdue payments, instead proposing a sharp reduction in its funding in May 2024.
In August that year, DAPA agreed to lower Indonesia’s financial share from 1.6 trillion won to 600 billion won — about one-third of the original amount — and scale back the level of technology transfer.
Further straining trust, an Indonesian employee at KAI was caught attempting to take a USB flash drive containing classified KF-21 data from its production facility in February 2024. A police investigation into the suspected security breach is still underway.
“The reason Korea can’t take a hardline stance against Indonesia isn’t just about funding, but more because the planned delivery of 48 fighter jets to Jakarta is critical for the KF-21’s debut on the global market,” a defense industry official said on condition of anonymity.
“In that sense, cooperation with the UAE is promising, as it could open new doors for export opportunities beyond relying solely on Indonesia.”
Defense Acquisition Program Administration (DAPA) chief Seok Jong-gun, right, shakes hands with Indonesian Vice Defense Minister Donny Ermawan Taufanto during a meeting in Jakarta, March 24 (local time). Courtesy of DAPA
DAPA said the UAE has not officially expressed intent to participate in the KF-21 development project, noting that the two sides are exploring cooperation options.
“Negotiations with Indonesia are ongoing. Through these talks, we have confirmed that the country remains committed to the project,” a DAPA official told The Korea Times.
It is said that Indonesia is willing to sign a revised agreement reflecting the reduced contribution only after the outcome of the police probe on the security leak is disclosed.
Adding to skepticism among Seoul officials, Jakarta has been actively diversifying its defense partnerships with other nations. In January 2024, it signed a deal to purchase 42 Rafale fighter jets from France and is reportedly considering participation in Turkey's fifth-generation KAAN fighter jet program.
Regarding concerns that Jakarta’s outreach to other partners could undermine the KF-21 program, the DAPA official said, “Indonesia has not requested any changes to its financial contributions or its allocation of IF-X units due to its involvement in other defense projects."