KAI secures $1B deal to produce combat helicopters

Korea Aerospace Industries (KAI)'s light armed helicopter [KAI]
Korea Aerospace Industries (KAI)’s light armed helicopter [KAI]

Korea Aerospace Industries (KAI), an aircraft manufacturer, clinched a 1.4-trillion-won ($1.08-billion) deal from the countryโ€™s defense procurement agency to produce combat helicopters.

The contract, announced through the companyโ€™s regulatory filing on Wednesday, marks the second round of mass-production orders for KAIโ€™s light-armed helicopters (LAHs) following the initial 302-billion-won contract signed a year ago with the Defense Acquisition Program Administration (DAPA).

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The latest agreement includes technical manuals and follow-on technical support, lasting 60 months. Delivery for the second round of orders is set to begin in the fourth quarter of 2025.

The previous and initial mass-production deal for LAHs was signed in December last year. KAI plans to deliver the first batch of helicopters by the end of next year.

The LAH is Koreaโ€™s second domestically developed chopper, following KAIโ€™s KUH-1 Surion helicopter. LAH and Surion conducted their first test flight outside Korea during the Dubai Airshow in November.

The upcoming LAHs will replace the aged military helicopters 500MD and AH-1S.

In a release, KAI said it will โ€œactively seek to enter the overseas helicopter marketโ€ on the back of the latest manufacturing deal.

Meanwhile, the aircraft manufacturer recently signed an 189-billion-won, five-year agreement with the Korea Research Institute for Defense Technology Planning and Advancement to develop a helicopter transmission system for the KUH-1 Surion with domestic technology.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]