KAI secures $1B deal to produce combat helicopters

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

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 country’s defense procurement agency to produce combat helicopters.

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

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 Korea’s second domestically developed chopper, following KAI’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 “actively seek to enter the overseas helicopter market” 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]