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Hanwa Aerospace Named Preferred Bidder for KF-21 Long-Range Missile Localization Project

Hanwha Aerospace has been selected as the preferred bidder for the 1.9 trillion won ($1.37 billion) system development project for the KF-21 fighter jet's long-range air-to-air guided missile, aiming to replace European-made weaponry with domestic technology.

Hanwa Aerospace Named Preferred Bidder for KF-21 Long-Range Missile Localization Project
MTIMES Archive / Photo

System development to cost 753.5 billion won through 2033, followed by 1.14 trillion won in mass production starting 2035

Hanwha beats out Hyundai Rotem and LIG D&A consortium in race featuring solid-fuel ducted ramjet technology

Aims to reduce reliance on Europe's Meteor missile and pursue integration with KAI for the KF-21

Hanwha Aerospace (012450) has been selected as the preferred bidder for the KF-21 long-range air-to-air guided missile system development project, valued at approximately 1.9 trillion won. The initiative aims to develop domestic technology for the long-range air-to-air weaponry currently reliant on European imports.

According to the defense industry on Tuesday, the Agency for Defense Development (ADD) chose Hanwha Aerospace as the preferred bidder for the project. Hanwha had competed against a consortium comprising Hyundai Rotem and LIG Defense & Aerospace (LIG D&A).

The total project scale reaches 1.9006 trillion won, combining system development and subsequent mass production. The company will invest 753.5 billion won in system development through 2033, followed by mass production worth 1.1471 trillion won starting in 2035.


Localizing Long-Range Armament for the European Meteor-Equipped KF-21


Long-range air-to-air missiles are weapons designed to intercept enemy aircraft at distances beyond visual range, where a pilot cannot see the target with the naked eye.

The KF-21 currently utilizes European munitions maker MBDA’s 'Meteor' for its long-range air-to-air requirements. The latest project aims to secure a domestic equivalent to perform the same role.

Successful development will reduce the KF-21's dependence on foreign weaponry while broadening the operational scope of domestically produced aviation arms. It will also establish a foundation to package the fighter jet with indigenous weapons in future export campaigns.

Solid-fuel ducted ramjet propulsion technology emerged as a key competitive factor in the bidding war.

A solid-fuel ducted ramjet operates by intake of external air during flight to burn fuel. Unlike conventional solid rockets, it utilizes atmospheric oxygen, allowing thrust to be adjusted during long-distance flight. For long-range air-to-air missiles that must travel vast distances before tracking a target, the ability to maintain speed and maneuvering energy until the terminal phase is critical.


Hanwha Accumulates Two Decades of Tech Expertise, Completes Five of Six Engine Projects


Hanwha Aerospace has accumulated roughly 20 years of technological expertise in solid-fuel ducted ramjet propulsion systems and guided missile system components.

According to the company, it has successfully executed five out of six government-backed projects related to solid-fuel ducted ramjet engines applied to long-range air-to-air missiles since 2021, including supersonic air-to-air missiles and supersonic cruise targets.

The company also boasts more than 40 years of development experience in the solid propulsion sector. It leveraged its capacity to independently execute the entire manufacturing process—from synthesizing propellant raw materials to producing key components—to edge out competitors in the bidding.

In the prototype development phase for long-range air-to-air missiles conducted last year, Hanwha Aerospace handled system integration while Hyundai Rotem was responsible for airframe structural design and propulsion development.

For the current system development phase, however, Hanwha Aerospace and the Hyundai Rotem–LIG D&A consortium submitted separate proposals, creating a competitive showdown.


Joint Cooperation with KAI for KF-21 Integration, Contract Targeted for This Year


The development of the guided missile and its integration into the KF-21 platform will proceed in parallel. On October 23rd, Hanwha Aerospace signed a Memorandum of Understanding (MOU) on mutual cooperation with Korea Aerospace Industries (KAI) to ensure the success of the system development project, spanning missile development, KF-21 integration, and deployment.

Hanwha Aerospace is also participating in a government-backed project to develop "air-to-air missile interface design technology for aircraft integration." This technology aims to link data and communication systems between the missile and the fighter jet, with secure implementation targeted for the first half of next year.

The two companies previously agreed in February to cooperate on aircraft-weapon system integration and joint export marketing. Once the long-range missile's development and KF-21 integration are complete, the companies will be fully equipped to pitch a package of homegrown fighter jets and indigenous weapons to overseas markets.

The ADD plans to finalize detailed terms with the preferred bidder and execute the system development contract within the year. System development will run through 2033, with subsequent mass production slated to begin in 2035.

MARKET Times

MTIMES Global Editorial Statement

This analysis is provided for international business intelligence and informational purposes only. It does not constitute investment advice or a solicitation to buy or sell securities. For inquiries regarding licensing or syndication, please contact [email protected].

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