Airbus Considers Establishing R&D Center in Korea... Increases Order Volume to '1 Trillion'

Changyang Lee Meets Airbus D&S Executives
Proposes Investment Including Establishment of Korean R&D Center

Airbus A380 aircraft.
Photo by Asia Economy DB

[Asia Economy Sejong=Reporter Lee Junhyung] European aircraft manufacturer Airbus is considering establishing a research and development (R&D) center in Korea. Airbus plans to expand its annual orders from Korean companies from the current 700 billion KRW to over 1 trillion KRW.

The Ministry of Trade, Industry and Energy announced that Minister Lee Chang-yang met with Michael Schilhorn, CEO of Airbus D&S, at the Seoul Government Complex on the 16th to discuss this plan. Airbus D&S is a subsidiary of the Airbus Group specializing in aerospace and defense.

On that day, Minister Lee requested Airbus to establish an R&D center in Korea. In response, CEO Schilhorn said he would concretize an action plan to build an R&D center in Korea. Currently, the Asian countries hosting Airbus’s global R&D centers are China, India, Malaysia, and Singapore.

CEO Schilhorn also stated that Airbus intends to increase the volume of parts supplied annually by Korean companies, currently around 700 billion KRW, to over 1 trillion KRW in the future. Airbus receives parts from about 50 suppliers including Korea Aerospace Industries (KAI) and Korean Air.

Michael Schilhorn, CEO of Airbus D&S.
[Photo by Ministry of Trade, Industry and Energy]

Additionally, CEO Schilhorn proposed a 'win-win' strategy to promote the entry of Korean-made complete aircraft such as the FA-50 into the Western European market. Minister Lee said, "If Korean military aircraft are exported to Western Europe, which leads the global aerospace industry, it will create significant momentum for future exports to the U.S. and emerging countries. If opportunities are provided for Korean companies to supply not only existing but also new items, Airbus can diversify its core vendors."

CEO Schilhorn also expressed willingness to cooperate with Korea in the space sector. Regarding the establishment of Korea’s Aerospace Agency, he shared that Airbus has collaborated with the European Space Agency (ESA).

Minister Lee reiterated his full support if Airbus invests in Korea. He said, "I am confident that the Airbus Korea R&D center will elevate the level of cooperation to the next stage. As the minister responsible for attracting foreign investment, I will provide a world-class investment environment through bold tax incentives and regulatory innovations when Airbus invests."