South Korea Defence Forum
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Around $150 to $200 million.
Echo_419
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Hindustani78
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Apr. 22, 2015, 6:52 AM
File photo of engineers assembling FA-50, South Korea's first home-built light fighter, at an assembly plant of the Korea Aerospace Industries (KAI) in Sacheon
SEOUL (Reuters) - When South Korean president Park Geun-hye stopped off in Peru this week, her diplomatic tasks included drumming up interest in her country's home-grown light fighter jets.
While Park did not come away with a new contract, state-run Korea Aerospace Industries (KAI) is in the running for a contract to supply Peru with 24 of its FA-50 fighter jets, worth as much as $2 billion.
Park's efforts are part of a broader push to turn the South Korean defense industry into an export powerhouse.
With South Korea's arms makers experiencing sluggish domestic growth, its defense exports have gone from $144 million in 2002 to $3.6 billion last year, with an average annual gain of 31 percent over the past five years.
The industry, developed mostly with American technology during a decades-long standoff with North Korea, is hoping to sustain that growth by selling beyond its main export markets in Southeast Asia into Latin America, Europe and the United States.
"They've got a strong combination of technology, skills, reasonable costs, an export-driven economy, and a domestic defense market that's large enough to justify home-grown products," said Richard Aboulafia, vice president at the Virginia-based Teal Group.
Although it is a close ally of the United States, South Korea lacks the diplomatic baggage that hinders some players in the global arms trade, such as China, Israel and Russia. Regional rival Japan only relaxed its ban on weapons exports last year.
"There are no negative geopolitical strings attached," said Tim Huxley, executive director of the International Institute of Strategic Studies in Asia.
South Korea was the 13th biggest exporter of major arms in 2014, up from 30th eight years ago, according to IHS A&D Balance of Trade 2015.
The global weapons market is fiercely competitive though and requires government backing for securing deals. Unlike Israeli equipment, South Korea's has not been extensively combat-tested, Huxley said. It also lacks the technological cutting edge of the latest U.S. and European equipment.
South Korean President Roh Moo-hyun waves on the T-50 aircraft during the roll-out ceremony at the headquarters of Korea Aerospace Industries in Sacheon, about 430 km south of Seoul, August 30, 2005.
KAI'S SKY-HIGH AMBITIONS
KAI's T-50 plane will be offered by its development partner Lockheed Martin for the U.S. military's program, called T-X, to replace 350 old T-38 trainer jets, a deal that could be worth $10 billion.
The U.S. Air Force is expected to announce its requirements later this year, and a win for KAI would be the country's biggest military export deal by far and open more markets for the plane.
"The T-50 has a rather good chance of winning T-X," said Teal's Aboulafia, noting that most rival planes are brand new designs. "The T-50 may be the only surviving off-the-shelf candidate."
Still, the competition will be stiff - other prospective bidders include BAE Systems Plc, Northrop Grumman, and a partnership of Boeing and Saab.
A win would cap other recent overseas deals for Korea which include Poland's 83.1 billion won ($77 million) order in November for Samsung Techwin's K-9 self-propelled Howitzers and a $420 million order last year from the Philippines for 12 KAI fighter jets.
KAI, formed in 1999 by combining the defense arms of Samsung, Hyundai and Daewoo, is headed by Ha Sung-yong, an energetic marketer who accompanied Park in Peru.
Its shares have rise threefold since its trading debut in June 2011, giving it a market value of $5.25 billion. It is aiming to export 1,000 T-50 jets and 300 helicopters by 2030 and 2025, respectively.
Currently South Korea's arms production is mainly for domestic use, with just 12.8 percent of output exported in 2013, according to the Korea Institute for Industrial Economics & Trade, which expects that share to grow to 18-20 percent this year. By comparison, the country exported 48 percent of its auto output and 44 percent of shipbuilding.
"It is a buyer's market," Huxley said. "The main reason for it not working out very well might be just sheer competition."
(Editing by Rachel Armstrong)
File photo of engineers assembling FA-50, South Korea's first home-built light fighter, at an assembly plant of the Korea Aerospace Industries (KAI) in Sacheon
SEOUL (Reuters) - When South Korean president Park Geun-hye stopped off in Peru this week, her diplomatic tasks included drumming up interest in her country's home-grown light fighter jets.
While Park did not come away with a new contract, state-run Korea Aerospace Industries (KAI) is in the running for a contract to supply Peru with 24 of its FA-50 fighter jets, worth as much as $2 billion.
Park's efforts are part of a broader push to turn the South Korean defense industry into an export powerhouse.
With South Korea's arms makers experiencing sluggish domestic growth, its defense exports have gone from $144 million in 2002 to $3.6 billion last year, with an average annual gain of 31 percent over the past five years.
The industry, developed mostly with American technology during a decades-long standoff with North Korea, is hoping to sustain that growth by selling beyond its main export markets in Southeast Asia into Latin America, Europe and the United States.
"They've got a strong combination of technology, skills, reasonable costs, an export-driven economy, and a domestic defense market that's large enough to justify home-grown products," said Richard Aboulafia, vice president at the Virginia-based Teal Group.
Although it is a close ally of the United States, South Korea lacks the diplomatic baggage that hinders some players in the global arms trade, such as China, Israel and Russia. Regional rival Japan only relaxed its ban on weapons exports last year.
"There are no negative geopolitical strings attached," said Tim Huxley, executive director of the International Institute of Strategic Studies in Asia.
South Korea was the 13th biggest exporter of major arms in 2014, up from 30th eight years ago, according to IHS A&D Balance of Trade 2015.
The global weapons market is fiercely competitive though and requires government backing for securing deals. Unlike Israeli equipment, South Korea's has not been extensively combat-tested, Huxley said. It also lacks the technological cutting edge of the latest U.S. and European equipment.
South Korean President Roh Moo-hyun waves on the T-50 aircraft during the roll-out ceremony at the headquarters of Korea Aerospace Industries in Sacheon, about 430 km south of Seoul, August 30, 2005.
KAI'S SKY-HIGH AMBITIONS
KAI's T-50 plane will be offered by its development partner Lockheed Martin for the U.S. military's program, called T-X, to replace 350 old T-38 trainer jets, a deal that could be worth $10 billion.
The U.S. Air Force is expected to announce its requirements later this year, and a win for KAI would be the country's biggest military export deal by far and open more markets for the plane.
"The T-50 has a rather good chance of winning T-X," said Teal's Aboulafia, noting that most rival planes are brand new designs. "The T-50 may be the only surviving off-the-shelf candidate."
Still, the competition will be stiff - other prospective bidders include BAE Systems Plc, Northrop Grumman, and a partnership of Boeing and Saab.
A win would cap other recent overseas deals for Korea which include Poland's 83.1 billion won ($77 million) order in November for Samsung Techwin's K-9 self-propelled Howitzers and a $420 million order last year from the Philippines for 12 KAI fighter jets.
KAI, formed in 1999 by combining the defense arms of Samsung, Hyundai and Daewoo, is headed by Ha Sung-yong, an energetic marketer who accompanied Park in Peru.
Its shares have rise threefold since its trading debut in June 2011, giving it a market value of $5.25 billion. It is aiming to export 1,000 T-50 jets and 300 helicopters by 2030 and 2025, respectively.
Currently South Korea's arms production is mainly for domestic use, with just 12.8 percent of output exported in 2013, according to the Korea Institute for Industrial Economics & Trade, which expects that share to grow to 18-20 percent this year. By comparison, the country exported 48 percent of its auto output and 44 percent of shipbuilding.
"It is a buyer's market," Huxley said. "The main reason for it not working out very well might be just sheer competition."
(Editing by Rachel Armstrong)
C130
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impressive.
350 T-50s and 500 K-9 Thunder and support vehicles for $20 billion would be nice.
kill two birds in one go.
T-38 Talon is crap and old and M109 Paladin is a old platform getting marginal improvements.
350 T-50s and 500 K-9 Thunder and support vehicles for $20 billion would be nice.
kill two birds in one go.
T-38 Talon is crap and old and M109 Paladin is a old platform getting marginal improvements.
I must admit, the KAI's FA-50s are impressive birds. The Korean industry is a power of its own and deserves further respect for its maturing defense sector. So that said I wish the best for KAI in their future goals. East Asia rises yet again.
My Korean skills is not as good, but to all Korean members here in PDF:
Naneyoun hangug-i haeyng un eul gewunhamnida ! Mansae!
Bala geondi ILBON-EUN hangug-ui bangsig-eul tayleul su isseyubnida!
@Red Mahura @sEoulman556
My Korean skills is not as good, but to all Korean members here in PDF:
Naneyoun hangug-i haeyng un eul gewunhamnida ! Mansae!
Bala geondi ILBON-EUN hangug-ui bangsig-eul tayleul su isseyubnida!
@Red Mahura @sEoulman556
You american also has a fair share of spoil. Without US subsystem, the Korea military product can never be sold.
But one thing south korea can't do is building products directly compete with US one.
What would make you think that? Don't you know that aside from Korean domestic orders, Indonesia has ordered 16 units of T-50s, Iraq has ordered 24 units of T-50s, and the Philippines has already purchased 12 units of T-50s, with plans for more. Currently, the Spanish Air Force, The UAE Air Force are considering purchasing T-50s.
And pound per pound the FA-50s are impressive birds , they are comparable to the early blocks of F-16s and can function as attack air craft as well as defense fighter. A squadron of these birds arent to be reckoned with.
Do you know FA-50 is running in what engine?What would make you think that? Don't you know that aside from Korean domestic orders, Indonesia has ordered 16 units of T-50s, Iraq has ordered 24 units of T-50s, and the Philippines has already purchased 12 units of T-50s, with plans for more. Currently, the Spanish Air Force, The UAE Air Force are considering purchasing T-50s.
And pound per pound the FA-50s are impressive birds , they are comparable to the early blocks of F-16s and can function as attack air craft as well as defense fighter. A squadron of these birds arent to be reckoned with.
And the FA-50 from side looks like JL-9
Sure, it uses a General Electric turbofan, and it is licensed produced by Samsung Corp. The fact that they have a partnership agreement means that KAI is able to produce these engines and install them on this aircraft; besides, profits also go to GE , as per their contractual agreement.
The mere fact that KAI already sold 16 units to Indonesia, 24 units to Iraq, 12 units to the Philippines, and possibly some to Spain, UAE is testament to that contractual allotment. Its the same way as how many of China's SUVs utilize and use Mitsubishi engines; or same as how Dongfeng Motor Corp uses Nissan Engines. How is this possible? Contractual agreement, my friend. Dong Feng and Geely , Cherry , respectively have a license agreement to produce Mitsubishi and Nissan Engines for their motor brands.
And we all know how there is a MASSIVE surge in Chinese auto brands being purchased; the top brands being Dong Feng, Geely, Cherry (and yes, the use Mitsubishi Engines).
A win win for China and Japanese Auto Industry.
Beidou2020
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South Korea just export US designed weapons with US components.
Don't be naive and think that US license produce meaning you have the full intellectual property of the US cutting edge 4th gen tutbofan engine.Sure, it uses a General Electric turbofan, and it is licensed produced by Samsung Corp. The fact that they have a partnership agreement means that KAI is able to produce these engines and install them on this aircraft; besides, profits also go to GE , as per their contractual agreement.
The mere fact that KAI already sold 16 units to Indonesia, 24 units to Iraq, 12 units to the Philippines, and possibly some to Spain, UAE is testament to that contractual allotment. Its the same way as how many of China's SUVs utilize and use Mitsubishi engines; or same as how Dongfeng Motor Corp uses Nissan Engines. How is this possible? Contractual agreement, my friend. Dong Feng and Geely , Cherry , respectively have a license agreement to produce Mitsubishi and Nissan Engines for their motor brands.
And we all know how there is a MASSIVE surge in Chinese auto brands being purchased; the top brands being Dong Feng, Geely, Cherry (and yes, the use Mitsubishi Engines).
A win win for China and Japanese Auto Industry.
I am sure you know US is not dumb. Turkey has been pioneer in licensing PWF-100 engine for decades and yet the best they can intellectually produce at the moment is only a small turbofan for cruise missile.
South Korea is still far from breaking independent from US or western. Their sales are still very dictated by the US and need their blessing. For example, can south Korea negotiated their FA-50 with Argentina? I am sure you are aware of Saab failed attempt to sell GRIPEN becos of western lobby.
But for a country size of south Korea, we still need to give credit for their achievement.
C130
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well they got it in a finish product, but knowing my stupid government they'll spend billions for a complete new system that will take years and will probably be scrapped.
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