[Yang Nak-gyu's Defence Club] KF-21, Next Year's Budget 'Steep Mountains'... Is Production Getting Further Away?

Despite 6 Successful Test Flights of the Six-Stage Rocket, Feasibility Study Delayed
1 Trillion Won Needed for Mass Production Next Year, but Time Is Tight

All prototype aircraft of the domestically produced supersonic fighter KF-21 (Boramae) have successfully completed their flights, but concerns are emerging that full-scale mass production may be delayed. This is due to delays in including mass production costs in next year's budget proposal.

According to the military on the 1st, the sixth and final prototype of the KF-21 successfully completed its maiden flight on the afternoon of the 28th of last month. Since the first prototype's maiden flight in July last year, all six prototypes have successfully flown for the first time. Furthermore, with the KF-21 receiving a provisional combat suitability certification, the foundation for starting full-scale mass production has been established.

Accordingly, the military plans to begin initial mass production of the KF-21 from next year, obtain the 'final combat suitability' certification by 2026, and deliver the aircraft to the Air Force in the second half of the same year.

The Defense Acquisition Program Administration (DAPA) also announced in March that, considering the security situation, it would waive the feasibility study and pursue a plan to integrate the research and development and mass production feasibility studies.

However, the Ministry of Economy and Finance put the brakes on this by stating, "To secure next year's budget, which is estimated to be around 1 trillion won, the current system requires completion of the feasibility study," and as a result, DAPA began the feasibility study in May. Considering that feasibility studies typically take more than six months, the results are expected to be available only after November this year.

Given that the Ministry of Economy and Finance must submit the budget proposal to the National Assembly by early August, 90 days before the fiscal year, it means that the mass production costs cannot be included in next year's government budget proposal.

Indonesia is also a problem. In January 2016, Indonesia signed a contract with Korea Aerospace Industries (KAI) to bear about 20% of the KF-21 development costs, approximately 1.7 trillion won, by 2026. In return, Indonesia was to receive one flying prototype and various technical data, and locally produce 48 fighters. However, Indonesia has only paid about 280 billion won so far, delaying approximately 800 billion won compared to the original plan.

On the 9th of last month, Eom Dong-hwan, head of DAPA, said at a press conference held at KAI headquarters in Sacheon, "Indonesia promised to notify South Korea of its payment plan for the outstanding balance of delayed contributions by the end of June." However, there has been no official notification from Indonesia to date.

However, according to Indonesian daily Kompas and others on the 28th of last month, Prabowo Subianto, Indonesia's Minister of Defense, said during a press meeting at the presidential palace on the 26th of last month, when asked whether Korea demanded a payment plan for the KF-21 contributions, "We will fulfill our promise." He also said that negotiations with the South Korean government regarding the payment plan are still ongoing.

Inside and outside the military, there are concerns that since Minister Prabowo is expected to run in Indonesia's presidential election next year, whether the contribution promise will be fulfilled may depend on the election results. A military official said, "We are currently making efforts to expedite the feasibility study schedule as much as possible to reflect next year's mass production budget."