Hanwha Aerospace and Korea Aerospace Industries (KAI) have reached an agreement to collaborate on future defence and aerospace programs. The two companies signed a memorandum of understanding in Seoul on February 5 aimed at enhancing the global competitiveness of South Korea’s aerospace sector, according to Aju Business Daily.
The agreement focuses on the joint development of unmanned aerial systems and indigenous aircraft engines, while also supporting expansion into the global commercial space market. Both firms plan to pursue research, development, and export opportunities across a range of next-generation platforms.
A key area of cooperation includes the development of an advanced engine for a future combat aircraft that could eventually replace the domestically developed KF-21 fighter. To align long-term strategy, Hanwha and KAI will establish a Future Aerospace Strategy Committee comprising senior executives from both companies.
South Korea’s defence industry has become increasingly active in forging major partnerships in recent years. In 2023, the country entered a collaboration with Boeing to jointly develop advanced weapon systems and high-altitude, long-endurance unmanned aerial vehicles.
More recently, in 2025, Embraer and South Korea’s Defense Acquisition Program Administration agreed to expand cooperation in manufacturing, technology exchange, and market development. That same year, KAI also formed a strategic partnership with US-based Kratos Defense & Security Solutions to co-develop advanced manned-unmanned teaming capabilities for future combat aircraft.
