Shortage to be covered by taxes and KAI capital,
The first domestically produced supersonic combat aircraft KF-21 ‘Boramae’ taking off vigorously from the runway. Photo provided by Defense Acquisition Program Administration,
, ‘[Seoul Economy]’,
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, ‘The cost-sharing amount from Indonesia, a co-developer of the Korean fighter KF-21 ‘Boramae’, has been reduced from the initial 1.6 trillion won to 600 billion won.’,
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, ‘The Defense Acquisition Program Administration announced that at the 163rd Defense Acquisition Program Steering Committee meeting held on the 16th, it approved the adjustment of the cost-sharing ratio for the KF-21 joint development and the subsequent action plan.’,
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, ‘The Defense Acquisition Program Administration stated, “The system development cost-sharing from Indonesia has been adjusted to 600 billion won and the follow-up action plan, including value transfer adjustments and securing insufficient funds, has been deliberated and approved.” It explained, “Considering the possibility of Indonesia’s participation in the production of Indonesian fighter (IF-X) and the need to secure insufficient funds, we will conclude discussions on cost-sharing with Indonesia properly to ensure the project is successfully concluded at the level expected by the people.”‘,
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, ‘The cost-sharing ratios set by the Korean government and Korea Aerospace Industries (KAI, manufacturer) and Indonesia were originally 60%, 20%, and 20%, respectively. In January 2016, Indonesia agreed to pay approximately 20% of the total development cost of KF-21, about 1.7 trillion won (later reduced to about 1.6 trillion won), until the development is completed by June 2026, in return for relevant technology transfer.’,
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, ‘However, citing financial difficulties, Indonesia recently proposed to pay only 600 billion won. The government decided to accept the proposal, as delays in cost-sharing payments could affect the development schedule. As a result, although the cost-sharing from Indonesia was reduced from 1.6 trillion won to 600 billion won, the expected amount to be covered is not 1 trillion won but 500 billion won. It is expected that the shortage will be covered by taxes and KAI capital.’,
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, ‘On that day, the committee also approved plans for the production of 155mm extended-range ammunition, the basic strategy for the ballistic missile guidance system project, and the revised basic strategy for the medium-sized tactical vehicle project.’,
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, ‘The 155mm extended-range ammunition aims to extend the range of the 155mm propellant tanks by approximately 30%, with the system development completed last year and now moving on to planning for production. The ballistic missile guidance system project is also in progress, adding guidance functions to improve the accuracy of the 155mm extended-range ammunition. A total of 840 billion won will be invested during the project period from 2025 to 2033.’,
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, ‘Furthermore, the medium-sized tactical vehicle project aims to develop vehicles for infantry units’ mobility, originally targeted for research and development but changed to domestic procurement. Approximately 382.5 billion won will be invested from 2026 to 2031.’,
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