Hanwha Aerospace inks $459.3 mil. deal to supply engines for KF-21 fighter jets

An F414 engine for the KF-21 fighter jet undergoes a test at Hanwha Aerospace's operation in Changwon, South Gyeongsang Province, in this undated photo. Courtesy of Hanwha Aerospace

Hanwha Aerospace said Thursday it has signed a 623.2 billion-won ($459.3 million) follow-up contract with the state defense procurement agency to supply engines for Korea's next-generation KF-21 fighter jets.

The agreement with the Defense Acquisition Program Administration (DAPA) builds on a previous engine supply deal worth 556.2 billion won signed a year ago, bringing the total contract value to 1.18 trillion won.

With the latest contract, Hanwha Aerospace will deliver 80 units of F414 engines for the first mass-produced batch of KF-21 jets by December 2028. The deal also includes logistics support, such as maintenance parts, technical manuals and on-site technical assistance.

Hanwha Aerospace has long been involved in the Korean military's aviation projects, having produced more than 10,000 engines for Korea's fighter jets, including the KF-5, KF-16 and F-15K, since 1979.

To bolster its high-tech engine business, the company has invested 40 billion won to build a smart factory dedicated to jet engine production.

"With our advanced aviation engine technology, we will ensure timely delivery of KF-21 engines and continue to contribute to the development of next-generation propulsion systems for national defense," the company said in a statement.

Korea launched the KF-21 development program in 2015 with the aim of acquiring a homegrown supersonic fighter jet to replace its aging fleet of F-4 and F-5 jets.

Deployment of the KF-21 is scheduled to begin by 2028.