[Yang Nak-gyu's Defence Club] Possibility of Winning F-35 Parts Maintenance Contracts

On the 1st, in celebration of Armed Forces Day, the F-35A, unveiled to the public for the first time, is on display at the '71st Armed Forces Day event' held at Daegu Air Base (11th Fighter Wing). Photo by Daegu Joint Press Corps

[Asia Economy Reporter Yang Nak-gyu] How much of the maintenance for parts of the stealth fighter F-35A can South Korea handle? With the U.S. government expected to send a Request for Proposal (RFA) for F-35A parts supply in the first half of this year, attention is focusing on the volume of orders.

According to the military on the 18th, as the countries operating the F-35A have expanded beyond the U.S. to include Japan, Australia, and some European countries, it has become difficult for Lockheed Martin, the U.S. manufacturer of the F-35A, to handle all maintenance. Therefore, the regions have been divided into Asia-Pacific, Europe, and North America, and maintenance is assigned to companies in the operating countries within each region. This is the Global Performance-Based Logistics (PBL) system.

The U.S. Department of Defense plans to select operating country companies for about 700 F-35A components in three stages. Major maintenance for airframe and engine was already decided in December 2014 to be handled by Australia and Japan. This means that for the overhaul of the F-35s owned by the Republic of Korea Air Force, it is inevitable to rely on Australia or Japan.

During the 'Stage 1 Regional Maintenance Provider' selection in 2016, which targeted 65 parts across 11 fields, the Korean company consortium led by Korean Air was selected as the maintenance provider for one part (ejection seat). The ejection seats used in F-35s by other countries are all manufactured by Korean Air, supplied to Lockheed Martin, and then distributed by Lockheed Martin to each country.

Last year, the 'Stage 2 Regional Maintenance Provider Selection' began, targeting 398 parts across 17 fields of F-35A components. Among them, the Korean defense industry consortium 'Team ROK' was assigned maintenance for parts in three fields: avionics, mechanical and electromechanical, and ejection. Team ROK is a consortium consisting of Hanwha Systems, Hanwha Machinery, Hanwha Techwin, Korean Air, LIG Nex1, and Hyundai Glovis. This means that in just over two years, the range of parts that domestic companies can maintain independently has significantly increased.

The U.S. government plans to distribute the 'Stage 3 Regional Maintenance Provider Selection' RFA within the first half of this year. There are more than 300 parts in this category alone. The Defense Acquisition Program Administration expects that after the U.S. government conducts on-site inspections of domestic defense companies by the end of this year, the final decision will be made in the first half of next year.

However, some remain skeptical. Considering that South Korea did not participate in the joint development of the F-35A and that companies from joint development countries handle maintenance for a significant portion of the F-35A, it is uncertain how many maintenance items South Korea will be able to secure. In fact, during the 'Stage 1 Regional Maintenance Provider' selection, Korean Air was selected for only one part, whereas Australia was selected for 64 items.

South Korea plans to introduce 40 F-35As by 2021 and deploy them in active service, becoming the third F-35A operating country in the Asia-Pacific region after Japan and Australia.