SEOUL, Aug. 16 (Yonhap) -- South Korea's defense authorities on Friday approved a pla...
en.yna.co.kr
S. Korea approves cutting Indonesia's contribution for joint KF-21 fighter project to 600 bln won
SEOUL, Aug. 16 (Yonhap) -- South Korea's defense authorities on Friday approved a plan to reduce Indonesia's contribution for a joint fighter jet development project to 600 billion won (US$440 million), about one-third of the original amount, the state arms procurement agency said.
The Defense Project Promotion Committee endorsed the plan amid concerns over Jakarta's commitment to the KF-21 project due to its repeated payment delays.
Indonesia initially agreed to pay 1.6 trillion won, representing 20 percent of the 8.1 trillion-won program launched in 2015 to develop an advanced supersonic fighter. However, Indonesia has so far contributed only around 380 billion won and has recently requested to reduce its total financial contribution to 600 billion won.
The Defense Acquisition Program Administration (DAPA) said the plan covers ways to secure insufficient funds, but did not offer details.
It said the approval considered various factors, including bilateral relations and the possibility of securing the funds, adding that it would properly wrap up cost-sharing talks with Indonesia.
Despite the payment delays, the project is on track to start delivering the advanced fighters, designed to replace South Korea's F-4 and F-5 Cold War-era jets, to the Air Force in 2026.
In June, Korea Aerospace Industries Ltd., the country's sole fighter jet builder, signed a 1.96 trillion-won deal with DAPA to start production of 20 KF-21s.
방추위 열어 인도네시아 제안 수용 확정 155㎜ 사거리연장탄 양산하고 추후 유도기능 부여 한국형 전투기 KF-21 '보라매'의 공동 개발국인 인도네시아의 분담금이 당초 1조6천억 원에서 6천억 원으로 축소됐다. 방위
n.news.naver.com
As for the KF-21 prototype, which Indonesia was originally supposed to receive in exchange for co-development, “If they want the prototype, we will discuss it, but if the total value of the technology transfer (plus the prototype) exceeds their share, they may have to pay more,” he said.
.
.
The cost of the KF-21 was initially set at 8.1 trillion won ($8.1 billion), but the DAPA expects it to be reduced by 500 billion won to 7.6 trillion won due to cost savings during the development process.
Therefore, even if Indonesia's contribution is reduced from 1.6 trillion won to 600 billion won, the shortfall will be 500 billion won instead of 1 trillion won.
