Hanwha and KAI’s KF-21 Missile Agreement, Explained

Hanwha Aerospace and Korea Aerospace Industries (KAI) have agreed to work together on a South Korean long-range air-to-air missile for the KF-21 Boramae. Their memorandum of understanding connects missile development with the work needed to put the weapon on the fighter. It is a cooperation agreement, not a government contract award. 38

What the July agreement covers

The agreement was signed at KAI’s headquarters in Sacheon in July 2026 and announced in September. Reporting identifies the signatories as Hanwha Aerospace PGM2 division head Baek Ki-bong and KAI fixed-wing business head Baek Joong-hyun. The companies plan to cooperate on developing the missile and integrating it with the KF-21, as well as on bringing other domestically developed airborne weapons onto the aircraft. 7632

This builds on a February agreement signed at the World Defense Show in Riyadh. That earlier arrangement covered cooperation on localizing and developing aircraft weapons—including long-range air-to-air missiles—and integrating armaments with the KF-21 and FA-50. The available source excerpts do not establish the full terms of the other February partnership described in the initial account, including supplier-network sharing and overseas marketing. 12

How the companies’ KF-21 roles fit together

KAI is responsible for the fighter’s aircraft platform and system integration. Hanwha Aerospace supplies major KF-21 equipment, including engines, landing gear and flight-control systems. Its affiliate Hanwha Systems supplies the AESA radar, electro-optical targeting equipment, infrared search-and-track equipment and mission computer. Those existing roles explain why coordination between the missile developer and aircraft integrator matters, but they do not establish that the proposed missile has already been integrated. 51335

Hanwha has also pursued long-range missile technology: reporting describes its work on a ducted-ramjet system and its participation in earlier prototype system integration. The provided evidence does not substantiate a claimed first-half 2027 aircraft-to-missile interface completion target or the precise claim that Hanwha participated in five of six solid-fuel ducted-ramjet research projects since 2021. Those should not be treated as confirmed milestones. 1516

Why the partnership is not a contract win

Hanwha Aerospace faces a competing bid from Hyundai Rotem and LIG Defense & Aerospace. KAI has separately signed an agreement with Hyundai Rotem covering missile development and integration, underscoring that cooperation with the aircraft maker is not exclusive to Hanwha. 811

The broader program has been reported at approximately 1.9 trillion won ($1.4 billion), comprising 753.5 billion won for development through 2033 and 1.1471 trillion won for mass production beginning in 2035. The Agency for Defense Development was expected to choose a preferred bidder in October 2026 and finalize its decision by year-end; preferred-bidder selection and a final contract are separate steps. Sources support a 2033 development target, but the provided reporting differs on the precise end-of-year deadline, so a November 2033 completion date is not established here. 829