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KAI CEO Urges Diplomatic Resolution in KF-21 Fighter Jet Dispute with Indonesia

The ongoing legal and diplomatic tensions over data security and cost-sharing threaten the partnership critical to expanding South Korea's defense market in Southeast Asia.

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Overview

  • KAI CEO Kang Goo-young emphasized the importance of resolving the KF-21 dispute with Indonesia to maintain access to Southeast Asian defense markets, including Malaysia.
  • The KF-21 project faced setbacks after Indonesian engineers were caught attempting to remove classified data in 2024, leading to a police probe and travel bans.
  • South Korea approved reducing Indonesia's cost-sharing obligation from 1.6 trillion won to 600 billion won in 2024, but Jakarta has not formally agreed due to unresolved legal issues.
  • KAI has submitted a petition requesting leniency for the Indonesian engineers, arguing the data in question likely does not contain critical technological information.
  • Indonesia’s remaining 200 billion won obligation is included in its budget, signaling continued participation once legal and diplomatic hurdles are cleared.