49 Types of Data Leaked from KAI... Including US-Related Documents [Yang Nakgyu's Defence Club]

Voluntary Report to the US Including Export Approval Documents
Potential Diplomatic Friction with the US and Indonesia if Issues Escalate

It is reported that the data leaked by an Indonesian employee from Korea Aerospace Industries (KAI) included documents related to the U.S. government's export license (E/L). As the issue escalates into a diplomatic problem, there are concerns that technology transfer from the U.S. and joint development with Indonesia may be canceled.

[Image source=Yonhap News]

On the 2nd, a government official stated, "On the 17th of last month, a mobile storage device (USB) that an Indonesian employee attempted to leak externally was found to contain 49 types of documents, including those related to E/L," adding, "We voluntarily reported this to the Defense Technology Security Administration under the U.S. Department of State on the 30th of last month, but we expect the U.S. to lodge a protest regarding this matter."

Counterintelligence agencies and the National Intelligence Service are investigating with a focus on the possibility of an insider within KAI, given that Indonesian technicians appear to have obtained a large amount of data. Among the technologies transferred to KAI from the U.S., some have not received export approval (E/L) from the U.S. government, raising the possibility that the U.S. side may suspect the leakage of unapproved E/L materials and raise issues. KAI has been downplaying the situation, stating, "So far, no military secrets or materials violating the Defense Industry Technology Protection Act have been found," and "We understand that most of the materials are general documents."

Some are concerned that this incident could cause setbacks not only in diplomatic relations but also in the future fighter development schedule and exports. According to the investigation results so far, it appears that the documents contain integrated daily reports compiled by Indonesian employees. Authorities are examining whether the information recorded in the daily reports qualifies as military secrets.

There is also a possibility that Indonesian technicians leaked a significant amount of information during their dispatch period. Since the project began in 2016, about 30 Indonesian local technicians have been assigned to KAI's Sacheon plant. They were dispatched to acquire aviation technology and share technology related to the KF-21. It is known that the Indonesian technicians are currently prohibited from leaving the country.

If Indonesian technicians have stolen confidential aviation-related materials such as those related to the KF-21, it inevitably escalates into a diplomatic issue. Joint development could also be canceled. Indonesia joined the joint development in January 2016 under conditions including bearing about 20% of the KF-21 development cost, approximately 1.7 trillion won (later reduced to 1.6245 trillion won), by June 2026, in exchange for receiving one prototype and various technical data. However, Indonesia has delayed payment of its share and has only paid 278.3 billion won to date. If this issue escalates diplomatically, the 20% development cost may not be received, causing problems for future operational deployment.

In particular, Indonesia has damaged trust not only in the KF-21 project but also by deciding to postpone the purchase of the French-made used fighter jets ‘Mirage 2000-5’, which had recently been contracted with Qatar. Moreover, Indonesia has raised suspicions by consecutively signing other fighter purchase contracts besides the KF-21. The Indonesian government signed a contract in February 2022 to purchase 42 French-made ‘Rafale’ fighters, followed by an agreement in June last year to buy 12 used French-made ‘Mirage 2000-5’ fighters from Qatar for about 1 trillion won.