KF-21 joint development with Indonesia could be reconsidered: DAPA chief

The chief of DAPA said his agency would "reexamine whether to cooperate in joint development" of the KF-21 advanced multirole fighter jet with Indonesia if allegations that Indonesian engineers stole significant technologies prove to be true.

Defense Acquisition Program Administration Minister Seok Jong-gun speaks during an interview with JoongAng Ilbo, an affiliate of the Korea JoongAng Daily, at the Gwacheon Government Complex in Gyeonggi on May 14. [JANG JIN-YOUNG]

The chief of the Defense Acquisition Program Administration (DAPA) said his agency would "reexamine whether to cooperate in joint development" of the KF-21 advanced multirole fighter jet with Indonesia if allegations that Indonesian engineers stole significant technologies prove to be true.

“The technology currently granted to Indonesia is at a rudimentary level, and the actual technology will be transferred after the development of the KF-21 is completed in 2026,” Seok Jong-gun, minister of the DAPA, said in an interview with the JoongAng Ilbo, an affiliate of the Korea JoongAng Daily, held on May 14 at the Gwacheon Government Complex in Gyeonggi.

This suggests that Korea holds the right to decide on technology transfers regarding the KF-21, and depending on the situation, Korea could continue developing the fighter on its own without Indonesia.

Seok celebrated his 100th day in office as the minister of DAPA on May 29. Just before his inauguration on Feb. 19, the technology leak by Indonesian engineers emerged, and Indonesia notified Korea that it would not be able to pay the full contribution of 1.6 trillion won ($1.16 billion) it had promised. Accordingly, DAPA decided to reduce the scope of the technology transfer while adjusting Indonesia’s contribution to 600 billion won.

The information leak by Indonesian engineers regarding the KF-21 was first reported on Jan. 17, and the investigation has since been transferred to the police after an internal investigation by DAPA.

In his first media interview since taking office, Seok said that DAPA will “discuss which technology to transfer in the future while looking at how well Indonesia pays its share.” This can also be interpreted as a policy of "payment first, transfer later."

The following interview has been edited for length and clarity.

A KF-21 prototype is seen during a test flight on May 15, 2023. [DEFENSE ACQUISITION PROGRAM ADMINISTRATION]

Q: Ultimately, the solution is to “receive less and give less.” The financial burden carried by Korea in developing the KF-21 has increased. What are your thoughts? A: It may seem like we have been robbed of the money, but that is untrue. For example, if two people decided to pay 100,000 won each and went on a trip to a hotel, but one person said they would sleep on the floor while paying 50,000 won, it would not be considered a loss by the person who paid the original amount. In the joint development with Indonesia, we promised a technology transfer and provision of prototypes in return for their contribution, but Indonesia is in a tough financial spot, so they will only pay 600 billion won and receive less. For us, it is more important to properly complete the system development of the KF-21 by 2026, which is the scheduled timeline.

There is criticism that thedeveloper, Korean Aerospace Industries (KAI), will assume the burden as Indonesia receives cost reduction benefits.

Some might believe we face losses in the short term. However, Indonesia’s status in Asean must be considered. In particular, Indonesia participated in the joint development under the premise of mass-producing 48 units of the IFX (the Indonesian name for the KF-21). This means that Indonesia can be a market for IFX exports. If we consider strategic aspects such as other defense industry exports in the future, it could be of great benefit to us.

Is it possible to not deliver the prototype? Technology transfers are intangible, but everyone can see a prototype transfer. For this reason, it is significant from Indonesia’s perspective. I think this could be a kind of leverage to our advantage in the future contribution payment process.

Indonesia has not yet paid 200 billion won of the reduced contribution of 600 billion won. There are concerns that Korea has been stabbed in the back yet again. We should not be stabbed in the back again, and we won’t be. We can determine our level of response by monitoring the other party’s response. The technology transfer will be pursued in accordance with how Indonesia reacts.

Police are also investigating whether Indonesian engineers leaked a 3D design modeling program for the KF-21. Some argue that reducing the technology transfer would be pointless if the core program had already been leaked. If the investigation results show that a significant technology leak has occurred, we would reconsider cooperating at all in joint development. We will continue coordinating which technologies will be transferred to Indonesia, but the actual technology will be transferred through consultation only after development is completed in 2026. Only a small portion of the technology has been transferred to date, and it is at a rudimentary level.

South Korea's military reconnaissance satellite unit 2 launches into orbit at Kennedy Space Center in Cape Canaveral, Florida on April 8. [YONHAP]

You were at the launch site of the military's second reconnaissance satellite on April 8 at Kennedy Space Center (KSC) in Cape Canaveral, Florida. We now have independent eyes watching over North Korea. We cannot win on the future battlefield unless we consolidate our military power based on space. I was moved when I went to the site where the satellite was launched. The satellite is the core of the Korean 3-axis system, and this is only the first step. The 425 Project is scheduled to launch five satellites, but the following projects will launch even more than that. More than 30 smaller micro-satellite systems will be launched from the mid-to-late 2020s to the early 2030s. Ultimately, the goal is to view North Korea in almost real-time, at intervals of less than 30 minutes. We can see North Korea’s nuclear and missile facilities and operating equipment. We’ll be able to distinguish whether something is a mobile launch vehicle or a passenger car.

North Korea is also trying to secure up to four military reconnaissance satellites. The most important thing is how precisely you can see things, that is, the resolution of the photos that the satellites take. When looking at the published images, North Korea’s military reconnaissance satellites appear at the level of a search engine's commercial satellite photos.

DAPA has set a goal of $20 billion in defense exports this year. Some projects are pending until the end of this year and early next year, such as exporting the first domestically developed helicopter. A maintenance, repair and overhaul (MRO) project is at stake in the United States. South Korea’s shipbuilding technology is the best in the world. This was conveyed to U.S. Secretary of the Navy Carlos Del Toro when he visited South Korea, but we have the advantage not only of technology but also of being able to accommodate the purchaser's timing of delivery.

What is happening with the projects that the Joint Chiefs of Staff (JCS) decided to pursue under the previous administration, such as light aircraft carriers and joint firepower ships? Among the projects requiring large-scale investment and financial resources, some are essential and irreplaceable, and some are more beneficial than others. However, the limited budget makes the decision-making process complicated and necessitates sufficient review. The projects mentioned are currently in operation. There is a need to look at them from a comprehensive perspective, considering the contribution of military power to the security situation.

BY LEE GEUN-PYUNG,LEE YOO-JUNG [lim.jeongwon@joongang.co.kr]