Korea Aerospace Industries Ltd. secured a three-year maintenance contract for South Korea’s homegrown KF-21 fighter jets, reinforcing the company’s position as the key defense contractor for the nation’s air force.
The 124.3 billion won ($95 million) performance-based logistics agreement with South Korea’s Defense Acquisition Program Administration runs through December 2026. The deal focuses on maintaining the first batch of mass-produced KF-21 Boramae jets, which are crucial to modernizing the country’s air defense capabilities.
Under the contract, KAI will manage spare parts inventory and provide comprehensive maintenance support for the fighters. The company’s compensation will be tied to specific performance metrics, including aircraft readiness rates.
The agreement expands KAI’s role in servicing South Korea’s domestically developed military aircraft fleet. KAI President Kang Goo-young said the company would leverage its support infrastructure to maximize the KF-21’s operational effectiveness.
The performance-based model represents a shift from traditional military maintenance contracts, introducing financial incentives and penalties based on the contractor’s ability to keep the aircraft combat-ready. This approach aims to improve efficiency and accountability in military aviation support services.
