{
  "id": 3867414,
  "title": "Hanwha, Hyundai Rotem, LIG Vie for $1.38 Billion KF-21 Missile Deal",
  "url": "https://urgent.news/2026/08/28/hanwha-hyundai-rotem-lig-vie-for-1-38-billion-kf-21-missile-deal",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-28T02:10:24.000Z",
  "source": {
    "name": "BusinessKorea",
    "slug": "businesskorea",
    "url": "https://www.businesskorea.co.kr/news/articleView.html?idxno=275716"
  },
  "original_language": "en",
  "account": "South Korea's defense sector is locked in a fierce bidding war for a $1.38 billion contract to develop a domestically-made long-range air-to-air missile for the KF-21 Boramae fighter jet. The Agency for Defense Development will accept proposals until Sept. 7, select a preferred bidder in October and finalize the contract by the end of the year. The project will cost 753.5 billion won in research and development, with 1.1471 trillion won reserved for subsequent production. Completion of system development is slated for November 2033, with mass production kicking off in 2035. Dominating the competition is Hanwha Aerospace, which has successfully completed five of the six related government-backed projects since 2021 and boasts relevant experience through its contribution to South Korea's first ducted-ramjet missile. Hyundai Rotem has teamed up with LIG Defense & Aerospace to compete for the contract. Hyundai Rotem has a long-standing history in ramjet technology, having demonstrated a Mach 6-capable engine through its Highcore project and recently ramping up investments for an aerospace production facility. LIG Defense & Aerospace, meanwhile, leverages its expertise in integrated aircraft weapons design, drawing from its work on South Korea's second-generation short-range air-to-air missile. The project's success could significantly impact the KF-21's export capabilities, as a domestically-made missile would streamline the fighter's package and potentially lower prices and operational costs for overseas customers. However, the competition faces legal risks, with Hanwha Aerospace currently under investigation for potential violations of the Serious Accidents Punishment Act following an explosion at its Daejeon facility and LIG Defense & Aerospace facing bribery charges. Sanctions against either bidder could delay the project or require foreign procurement, potentially disrupting South Korea's indigenous aircraft-weapons market for years to come.",
  "summary": "South Korea's defense companies are competing for a 1.9 trillion won ($1.38 billion) project to develop a domestically produced long-range air-to-air missile, a key weapon for the country's KF-21 Boramae supersonic fighter jet. The Agency for Defense Development plans to accept proposals through Sep",
  "key_points": [
    "Hanwha, Hyundai Rotem, LIG vie for $1.38B KF-21 missile contract",
    "Proposals accepted until Sept. 7, contract finalized by year-end",
    "Hanwha leads with experience in ducted-ramjet missile development"
  ],
  "editors_take": "A successful domestic missile development would significantly boost the KF-21 Boramae fighter jet's export prospects by streamlining its package and potentially lowering prices and operational costs for overseas customers.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}