Korea Aerospace Industries (KAI) has decided to invest a total of KRW 908.6 billion won (US$700 million) in the development of the Advanced Air Vehicle (AAV) and Single-Seat FA-50 at its board meeting on March 7, accelerating its future projects.
KAI will first invest KRW 55.3 billion won (US$40 million) in the first phase of AAV development. Starting with this investment, the company will transition AAV development from the core technology stage to system development and begin commercializing AAVs.
The investment will be used for the first phase (2024-2025) of the AAV system development, which is expected to total KRW 150 billion won (US$120 million) by 2028, to carry out basic and detailed designs based on proprietary model geometry, and to demonstrate core technologies such as distributed electric propulsion, flight control, and integrated design of the aircraft.
In the second phase (2026-2028), the company plans to complete the production and test flight of the air vehicle and enter the domestic and international markets by 2031 through the acquisition of domestic and U.S. FAA certifications.
Based on the self-developed AAV technology demonstrator, KAI plans to develop a Korean standard AAV platform in conjunction with future space agency tasks and commercialize the development of civil-military AAVs. By 2050, it aims to sell 23,000 cumulative units at home and abroad.
It will also invest KRW 355.6 billion won (US$27 million) in the development of the Single-Seat FA-50. The plan is to proactively respond to the global multirole fighter market demand and create new markets by expanding its portfolio.
The FA-50, a multi-role fighter, is the core of Korea's K-defense exports, with 138 units exported worldwide so far, and demand for the single-seat type has been steadily confirmed by existing operators.
The single-seat FA-50 is expected to diversify business opportunities by further enhancing its multipurpose mission capabilities, such as expanding the mission radius of air-to-air and air-to-ground operations, and meeting customer needs through various options.
KAI expects to achieve a market share of more than 50 percent in the single-seat market, which is expected to total more than 450 units, including overseas exports and domestic commercialization, creating a market of up to 300 units.
"We have achieved results in our main business, such as achieving the highest sales last year, and have built a solid foundation for future businesses," said KAI President Kang Koo-young. "We will expand our investment in future businesses based on the 4th Industrial Revolution technology in preparation for the new aerospace era and preempt the future aerospace market."
