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.
Boeing, Airbus seek more partnerships with Korea
Randy Rotte, left, Boeing’s senior director for International Business Development for the Asia-Pacific region, and John Kim, director of Korea Defense and Government Services at Boeing, attend a press conference during the Seoul International Aerospace and Defense Exhibition (ADEX) taking place at Seoul Air Base in Seongnam, Gyeonggi Province, Wednesday. Courtesy of Boeing Korea
By Lee Hyo-jin
Rival aircraft manufacturers eye bigger opportunities in Korea's defense industry
Global aircraft manufacturing giants Boeing and Airbus seek to bolster partnerships with Korea in the defense sector, with both firms laying out areas of cooperation they would like to focus on, Wednesday.
The rival companies met with reporters on the second day of the Seoul International Aerospace and Defense Exhibition (ADEX) taking place at Seoul Air Base in Seongnam, Gyeonggi Province, during which they underscored the growing strategic importance of the East Asian region.
“If you look at Asia-Pacific….It’s a very tough neighborhood securitywise. If you look to the north here and other directions, there are definitely security challenges throughout the region. Certainly not just in Korea, but all places,” Randy Rotte, Boeing’s senior director for International Business Development for the Asia-Pacific region, said during a press conference.
John Kim, director of Korea Defense and Government Services at Boeing, narrowed his focus to Korea. “Korea is one of the major supply bases for Boeing both in the defense and commercial sectors. But I think it’s also an opportunity to advance that relationship even further," he said.
“Boeing's continued investment commitment to Korea can be represented by over $4 billion that we have spent in Korea over the past 15 years.”
Korea is the fourth-largest operator of Boeing’s CH-47F Chinook helicopters and operates a squadron of 36 AH-64 Apache helicopters.
Driven by security imperatives, fleet modernization and industrial partnerships, Boeing expects business opportunities in the Asia Pacific region over the next five years to amount to $65 billion.
Although Boeing is a U.S.-based firm, its focus is not limited to the U.S. military, as it strives to provide affordable solutions to any country it partners with, said Rotte.
For instance, Rotte mentioned that the E-737 Peace Eye aircraft which is currently in operation here was not developed for the United States, but for international customers, the first three of which were Australia, Korea and Turkey.
Boeing’s European rival Airbus also renewed its commitment to partnerships with Korea.
Francisco Javier Sanchez Segura, executive vice president of engineering at Airbus Defense and Space, speaks during a press conference at the Seoul International Aerospace and Defense Exhibition (ADEX) taking place at Seoul Air Base in Seongnam, Gyeonggi Province, Wednesday. Courtesy of Airbus
“Korea is a market where, as a company, we have achieved success across all our business areas on Korea,” Francisco Javier Sanchez Segura, executive vice president of engineering at Airbus Defense and Space, said during a press conference, also held on Wednesday.
Since the first Airbus KC-330 tanker aircraft was deployed in Korea in 2019, there are currently four KC-330s in operation.
The multi-role tanker aircraft (MRTT) has participated in a variety of military exercises here. It is better known to the public as the aircraft previously used in various evacuation operation of Korean nationals overseas from war-torn or disaster-hit regions such as Afghanistan, Turkey and Israel.
When asked about the possibility of additional purchase deals of KC-330 aircrafts by the Korean government, Segura replied, “What I can share is that we believe that the MRTT is the right choice for the needs of the country’s air force.”
Korea is eyeing the procurement of three new military transport planes by 2026, and the Defense Acquisition Program Administration (DAPA) is expected to announce its final decision in November. Airbus A400M Atlas has been mentioned as one of the potential candidates.
Regarding this, Segura said that the A400M would be a "perfect solution" for the Republic of Korea Air Force, considering the different missions the aircraft can deliver both tactically and logistically.
Segura also expressed willingness to boost partnerships in Korea's space field. In 2018, Airbus and the Korean Aerospace and Research Institute (KARI) developed Korea's first multi-function geostationary satellite (GEO-Kompsat).
In line with such efforts, Airbus signed a memorandum of understanding (MOU) later in the day with local defense company LIG Nex1, seeking to expand their areas of cooperation into research and development in satellite technology.