Kang Guyoung KAI President Hopes for Amicable Resolution with Indonesia

On-site Interview at Malaysian Defense Exhibition
"Petition Submitted for Amicable Resolution"

On the 21st (local time), Kang Guyoung, President of Korea Aerospace Industries (KAI), is giving an interview at the LIMA 2025 defense exhibition in Langkawi, Malaysia. Korea Aerospace Industries.

"Cooperation with Indonesia on the KF-21 is also important for entering markets in Southeast Asia, including Malaysia."

On the 21st (local time), Kang Guyoung, President of Korea Aerospace Industries (KAI), spoke with reporters at the LIMA 2025 defense exhibition in Langkawi, Malaysia, and addressed the recent discord with Indonesia, a joint developer of the KF-21 Boramae. He stated, "I hope the issue will be resolved amicably as soon as possible within the boundaries of the law." Kang expressed concern that emotional issues with Indonesia could negatively affect the KF-21's prospects in Southeast Asia.

Indonesia has shown a lukewarm attitude toward cooperation on the KF-21 project since February of last year, when its engineers were caught attempting to remove unauthorized portable storage devices (USBs) containing KF-21 data. This attitude appears to stem from dissatisfaction over the fact that five Indonesian engineers remain under travel bans and are still under investigation. In the meantime, South Korea adjusted Indonesia's share of the system development cost from 1.6 trillion won to 600 billion won, waiting for a more positive response from Indonesia, but has received little in return. Revising the cost-sharing agreement requires amending the contract, but Indonesia maintains that it cannot begin this process until issues such as the travel bans on its engineers are resolved.

Kang said, "I hope this can be resolved through political and diplomatic solutions," adding, "From the perspective of national interest, it is necessary to overcome such conflicts." In an effort to resolve the issue amicably, KAI has even submitted a petition to the investigative authorities. The petition reportedly argued for leniency, noting that it is unlikely the materials taken by the Indonesian engineers contained any core information.

Kang explained that the KF-21 is well-suited for the Southeast Asian market. He said, "Southeast Asian countries say they have no 'main enemy,' but they do cite China as a 'threat.' These countries want the F-35, but due to issues such as US export approval, it is not realistically feasible for them to acquire it. This is where the KF-21 could have an opportunity."

He specifically targeted the Malaysian market. Kang said, "I told high-ranking Malaysian officials that, compared to 4.5-generation fighters such as the Rafale and Eurofighter, the KF-21 can deliver 150% of the performance at 70-80% of the cost," emphasizing, "When you add up all operating costs over a 30-year life cycle, the KF-21 will be highly competitive in terms of price."