KF-21 draws interest from UAE, Poland and Philippines but creates tech transfer dilemma for Korea

Korea's homegrown fighter jet, the KF-21 Boramae, is seen during a test flight on Nov. 29, 2024. [NEWS1]

[NEWS ANALYSIS]
 
The KF-21 Boramae, Korea’s first homegrown supersonic fighter, put on an imposing aerial display beneath the Taegeuk national flag at its rollout ceremony last month, showcasing the culmination of more than a decade of development and over 7 trillion won ($4.77 billion) in investment.
 
On the ground, things are looking up as well: Conflicts with its codeveloper, Indonesia, have been somewhat patched up, and there are already several potential buyers in the pipeline, such as the Philippines, Poland, the United Arab Emirates (UAE) and Saudi Arabia, as other countries look to beef up their defenses amid the unrest in the Middle East.
 

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But beneath the optimism, a familiar dilemma is surfacing. Every potential deal forces a choice between export revenue and control over sensitive technology, a balance long managed by established arms exporters. With the KF-21, Korea is now confronting that trade-off from the seller’s side.
 
The jet has since completed its first flight, with the Air Force set to receive its first units later this year. The program is already being framed as a milestone in Korea’s push for defense industry independence with the fighter's manufacturing localization rate reaching 65 percent, according to the Defense Acquisition Program Administration (DAPA).
 

The KF-21 Boramae fighter jet flies across the sky near the Seoul Air Base in Seongnam, Gyeonggi, on Oct. 17, 2025. [YONHAP]

The Indonesia warning
 
The most revealing detail centers on a single aircraft that Korea is reportedly considering transferring to Indonesia, a partner in the joint development program.
 
Korea and Indonesia reached a working-level agreement in February on an arrangement to hand over Prototype No. 5 of the KF-21, according to data DAPA gave to the office of Rep. Kang Dae-sik of on April 7. The comment sections of local media outlets were filled with concerns about technology leaks once the news broke out. 
 
“Once you export weapons, some level of physical technology exposure is inevitable,” said Kim Ki-won, a professor at Daekyung University's department of military studies. “Today, with tools like 3-D scanners, 3-D printers and nondestructive inspection methods, it is relatively easy to analyze physical components.”
 
“While a prototype differs from a production model in terms of completeness, the underlying technologies are largely similar,” said Prof. Kim. “So from a technical standpoint, analyzing a prototype could provide insights comparable to those from a production aircraft.”
 
The arrangement reflects a broader reality that has defined the partnership. The KF-21’s co-development partner has, in effect, also become its most cautionary tale, as disputes over technology transfer have surfaced repeatedly.
 
Indonesia joined the program in 2015, committing to fund 20 percent of the total development cost of about 1.6 trillion won ($1.2 billion). In return, Jakarta was promised technology transfer and a pathway to locally produce 48 Indonesian variants of the fighter through its state-owned manufacturer.
 

President Lee Jae Myung, right, and Indonesian President Prabowo Subianto chat as they exchange gifts following their bilateral summit as they stroll along Nokjiwon, a lush garden in the Blue House complex in central Seoul, on April 1. [BLUE HOUSE]

 
The agreement, however, did not go as planned. Indonesia repeatedly missed payments and by August 2020 was 500 billion won behind schedule. Then in 2024, a group of Indonesian engineers stationed at KAI’s headquarters in Sacheon were accused of attempting to leak KF-21 technical data, a spat that escalated into a diplomatic dispute.
 
The partnership was eventually restructured. Indonesia’s share was cut to 600 billion won, about 7.4 percent of the total cost, and the scope of technology transfer was significantly narrowed. The original vision of 48 locally produced fighters was effectively shelved, replaced for now by a conventional export purchase of 16 aircraft.
 
Defense analysts say the decision to hand over the prototype also expressed a clear boundary. Indonesia would receive the airframe, but not the core technologies such as source codes that make it effective. 
 
“The companies involved have spent more than a decade developing the aircraft, giving them strong incentives to protect key technologies,” said an industry official from a manufacturer involved in the KF-21 program. “The scope of technology transfer is still being negotiated. Whether a prototype will be included has not been fully decided either.”

The KF-21 fighter jet at its launch ceremony on March 25 at the Korea Aerospace Industries headquarters in Sacheon, South Gyeongsang. [NEWS1]

Potential buyers and the technology transfer dilemma
 
The scope of technology transfer is expected to remain a core agenda in future deals with other countries, as other potential buyers are likely to push in the same direction. 
 
Gulf States, long constrained in their efforts to acquire the Lockheed Martin F-35 Lightning II, are increasingly turning their attention to the Boramae as an alternative, particularly as Seoul accelerates its push into the global arms market. 
 
The UAE, which previously pursued an F-35 purchase, suspended negotiations with Washington in 2021 amid U.S. concerns over technology security and ties with China, effectively leaving the deal unresolved. Abu Dhabi has expanded defense cooperation with Korea, including expressing interest in the KF-21 and exploring models involving joint development and local production following high-level bilateral meetings and defense exhibitions.
 
In Saudi Arabia, interest has also emerged as part of a broader effort to diversify defense procurement and localize military industry under Vision 2030, with senior Royal Saudi Air Force leadership visiting Korea Aerospace Industries facilities in 2026 to explore potential cooperation tied to the KF-21 program.
 
In Southeast Asia, the Philippines has emerged as a prospective customer, with discussions reported in 2026 over potential acquisition timelines for the KF-21 as part of its long-term air force modernization plan. The interest builds on Manila’s existing operation of the FA-50 Fighting Eagle, which has positioned Korea as a key defense partner as the Philippines evaluates next-generation fighter options as deterrence against China's air force.
 
Similarly, Poland has expressed a desire to integrate the KF-21 into its own burgeoning defense industrial base. Major General Ireneusz Nowak, Inspector of the Polish Air Force, conducted multiple high-level visits to Korea to inspect the aircraft across 2024 and 2025. Nowak personally participated in a test flight of a KF-21 prototype at KAI’s headquarters in Sacheon in June 2025.
 
“There is no fixed manual for this,” said Professor Choi Gi-il of Sangji University's Department of Military Studies. “Even if we have internal guidelines, they cannot simply be enforced on the other side. The counterpart will always push for more technology and concessions. This is inherently relational — it depends on diplomacy, bilateral relations and broader geopolitical factors.”
 

President Lee Jae Myung speaks in front of the KF-21 at the launch ceremony of the fighter jet on March 25 at the Korea Aerospace Industries headquarters in Sacheon, South Gyeongsang. [NEWS1]

 
Squeezed from two directions
 
Korea’s export ambitions face pressure from two sides at once. From above, the problem is the engine. The KF-21 is powered by U.S.-developed GE F414 turbofans, produced under license by Hanwha Aerospace at its Changwon factory.
 
Because a U.S.-developed component sits inside the aircraft, the entire jet falls under the International Traffic in Arms Regulations, a set of U.S. rules that governs the sale of military equipment worldwide. In practice, it means Korea cannot sell the KF-21 to anyone without getting the green light from the U.S. State Department first.
This is not a hypothetical risk. In October 2015, Korea tried to sell its T-50 supersonic trainer to Uzbekistan. The United States blocked the deal, citing concerns that the technology could end up in Russian hands. The T-50 uses a GE engine and Lockheed Martin avionics, giving Washington the legal authority to stop the sale.
 
“The U.S. became more restrictive after concerns about technology leakage, particularly involving China, but remains relatively flexible with allies like Korea,” said Associate Professor Jang Won-jun from the defense technology department at Jeonbuk University. “Israel and France also protect core technologies while enabling exports. Germany is more restrictive, often factoring in human rights.”
 
Korea finds itself in an unusual position. It depends on the United States for the engine, making it a technology receiver. At the same time, its own customers are asking Korea to hand over technology, making it a provider. Both of those relationships limit its room to maneuver.
 

The KF-21 Boramae, the country's first homegrown fighter jet, flies over Seoul Airport in Seongnam, Gyeonggi, during a test flight in October 2023. [NEWS1]

The playbook Korea is building
 
A template is starting to take shape, in which Korea protects software and gives away hardware. In this scenario, it is willing to hand over physical aircraft and basic documentation. What it keeps are the software systems that run the jet’s combat operations, the electronic warfare programs and the radar source code developed by Hanwha Systems. The aircraft is visible and politically satisfying for the buyer. But the software is where the real military advantage lives, and that stays in Korean hands.
 
The way the KF-21 is designed also helps. The jet comes in stages called blocks. Block I, focused on air-to-air combat, is what is entering production now, at a unit price of about $83 million. Block II, which adds the ability to hit ground and sea targets, is expected by early 2027 and costs roughly $112 million.
 
A future Block III will bring more advanced capabilities such as an internal weapons bay. Korea can sell the current versions to today’s buyers while holding back the next generation for premium partners — or keeping it to itself.
 
The aircraft also uses a standardized software layer that lets buyers plug in their own weapons and sensors without too much difficulty. Korea sells this as a feature, saying it gives operators independence. But it also means Seoul does not have to hand over its own homegrown systems as the buyer can bring in their own alternatives.
 
France provides a model Korea aspires to. The Rafale fighter is powered by a domestically developed engine, giving Paris far greater autonomy over exports than countries reliant on foreign components. France has sold the jet to India, Egypt, the UAE and Indonesia, while retaining strict control over sensitive technologies such as radar and electronic warfare software.
 
“In the end, it is about trade-offs,” said Prof. Jang. “If you are exporting systems worth tens of billions, it does not make sense to block deals over relatively small portions of technology transfer. You give what you can, protect what you must and expand exports accordingly.”
 
Korea spent 25 years learning how to build a fighter jet. Now it has to learn something harder: How to sell one without giving itself away.

BY KIM MIN-YOUNG [kim.minyoung5@joongang.co.kr]