KAI’s FA-50s.

Korea Aerospace Industries, Ltd. (KAI) has signed a $420 million deal to export 12 FA-50s to the Philippines. 

KOTRA and the Defense Acquisition Program Administration (DAPA) said on March 28 that KAI landed a Philippine Air Force multi-purpose fighter purchase project for 12 FA-50s in the government-to-government way. 

Under the $420 million deal, the FA-50s will be delivered within 38 months after the contract goes into effect. But two of the FA-50s will be handed over to the Philippines at the request of the Philippine Air Force within 18 months after the effectuation of the deal. 

Korea Aerospace Industries, Ltd. (KAI) won a Philippine Air Force multi-purpose fighter purchase project for 12 FA-50s in the government-to-government way. Among the participants at a signing ceremony at the Philippine Defense Ministry in Manila on March 28 were KOTRA President Oh Young-ho, DAPA Administrator Lee Young-geol, KAI President Ha Sung-yong, and Korean Ambassador to the Philippines Lee Hyuk.(Photos: KAI)

Among those present at the ceremony to sign the contract held in Manila on March 28 were KOTRA President Oh Young-ho, DAPA Administrator Lee Young-geol, KAI President Ha Sung-yong, and Korean Ambassador to the Philippines Lee Hyuk.

This is the latest and third export deal for KAI aircrafts in T-50 trainer-light attack fighter family. KAI exported 16 units of the T-50 to Indonesia in 2011 and 24 units to Iraq in 2013.

The T-50 aircraft, jointly developed with Lockheed Martin of the United States, is a multi-purpose aircraft capable of training pilots of next-generation advanced aircrafts. 

In particular, Korea’s homegrown first assault fighter FA-50 has proved to have a competitive edge as a high-performance, low-cost light assault fighter. The FA-50 is 13.13 meter long and 9.45 meter wide with a maximum speed of mach 1.5, and is capable of carrying a maximum 4.5-ton arsenal. 

The Philippine Air Force’s multi-purpose fighter purchase program suffered a series of setbacks including the occurrence of disasters, but the signing of the deal was owed to Korea’s civilian, government, and military’s joint sales and marketing activities, coupled with President Park Geun-hye’s diplomatic activities. 

KOTRA spearheaded the signing of the deal as a G2G government agency, which gave assurance on the implementation of the project, while DAPA also spared no efforts to provide support by assuring the quality of the aircraft through the Defense Agency for Technology and Quality and meeting the Philippines’ demand for the early delivery of the aircraft.

The Korean Air Force has contributed to KAI’s winning the deal by accepting the Philippines’ demand to provide FA-50 components and parts in advance and share real flight experiences. 

The Korean Embassy served as a go-between with the Philippine government to iron out differences with the Korean side. 

For its part, KAI provided solutions on administrative procedures and the progress of the project by dispatching its expert manpower to the Philippines. 

Korea’s exporting of the FA-50s is the Philippines’ first G2G contract and its largest-ever military procurement contract. The Park Geun-hye government’s sales diplomacy and amicable ties between the two countries also played a part in winning the deal. Philippine President Benigno S. Aquino made a state visit to Korea at the invitation of Korean President Park during which the two countries signed an MOU on defense cooperation last October. Park herself extended her thanks to President Aquino for the Philippines’s decision to buy the FA-50s and delivered a message urging the early signing of the deal.

Last December, Korea dispatched a military unit to the Philippines to provide a helping hand in dealing with damages caused by floods, thus improving Korea’s standing with the Southeast Asian country.

Korea’s winning of the latest deal is expected to boost the nation’s exports of Korean-made products, including convoy ships, transport ships and military telecommunications systems, industry analysts said. 

A report from the Korea Institute for Industrial Economics & Trade (KIET) released on Feb. 23, showed that Korean-made military supplies could account for a 65 percent share, or some $1.2 billion, of the Philippines’ $1.8 billion program to modernize its military, but Korea would first have to overcome its low standing there.