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South Korea to Approve Indonesia's Proposed Cost Reduction for KF-21 Project

Korea Economic Daily LogoKorea Economic Daily1w ago

 South Korea to Approve Indonesia's Proposed Cost Reduction for KF-21 Project - Korea Economic Daily

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We are positively considering accepting the proposal,” the DAPA said in a statement.“We’re also working on a plan to adjust the scale of technology transfers in line with the reduced financial contribution.”A DAPA official said: “A continued deadlock over Indonesia’s failed payments will affect the KF-21 fighter jet development schedule, which in turn will delay the planned deployment of new fighter jets.” The agency said it will likely make the final decision at a DAPA review committee meeting later this month after consultations with related ministries, including the Defense Ministry and the Finance Ministry.

The DAPA initially estimated the entire KF-21 project cost at 8.1 trillion won but now expects the expenditure to be around 7.6 trillion won after rigorous cost-cutting efforts.“Even with the reduced contribution from Indonesia, we expect the Korean side to shoulder an extra 500 billion won,” said the DAPA official.

The DAPA said in January the KAI will likely begin mass production of the new warplane this year for the first delivery to the Korean Air Force in the second half of 2026.“We will keep proving the KF-21’s performance through various flight assessments, including aerial refueling and air-to-air missile launch tests,” said DAPA Minister Eom Donghwan.


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Category: Economy

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Article Type: News Report

Published On: 2024-05-08 @ 17:40:12 (1 weeks ago)

News Timezone: GMT +8:00

News Source URL: kedglobal.com

Language: English

Article Length: 592 words

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Copyright Owner: © Korea Economic Daily

News ID: 20914205

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News Last Updated: 11 hours ago

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