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KAI Secures $700 Million Philippine Fighter Jet Deal as Manila Doubles Fleet

The company will deliver upgraded FA-50s by 2030 with enhanced radar and refueling capabilities
South Korea
k 047810.KO Mid and Small Cap 2000
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Korea Aerospace Industries landed a 975.3 billion won ($700 million) contract to supply 12 additional FA-50 light combat aircraft to the Philippines, doubling Manila’s supersonic fighter fleet as regional tensions persist.

The deal, signed June 3 with the Philippine Department of Defense, includes logistics support with aircraft deliveries scheduled through 2030. The upgraded FA-50PHs will feature enhanced range through aerial refueling, active electronically scanned array radar, and expanded air-to-air and air-to-ground weapon capabilities.

KAI previously delivered 12 FA-50 jets to the Philippines by 2017 under a 2014 agreement. However, the fleet suffered a loss in March when one aircraft crashed in Bukidnon province during operations, leaving 11 operational jets.

The timing reflects Manila’s military modernization drive as friction escalates with Beijing over contested maritime claims in the West Philippine Sea. South Korea aims to become the world’s fourth-largest arms exporter by 2027, with the Philippines emerging as a key customer alongside existing FA-50 operators including Indonesia and Thailand.

KAI previously secured a 27 billion won ($20.4 million) performance-based logistics contract for Philippine FA-50 maintenance in December, marking the company’s first overseas support package. The South Korean manufacturer delivered 18 FA-50 units to Malaysia in 2023 and continues pursuing customers across Southeast Asia, Europe and South America.

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