The Royal Thai Navy has completed its evaluation of bids for a new 4,000-ton frigate, worth roughly 175 billion baht (~800 billion won) and expandable toward 4 trillion won with follow-on ships, and Korean reporting on September 1, 2026 says Hanwha Ocean was the only bidder to clear the first qualification and technical round. The result has been forwarded to the Thai Defense Ministry and cabinet for final approval, with an announcement expected within days. Hanwha Ocean holds an edge from its 2018 delivery of the 3,700-ton HTMS Bhumibol Adulyadej and its improved Ocean-40F export design, while HD Hyundai Heavy Industries countered with a roughly 40% local-production pitch. No final signature had been confirmed as of September 3.
With KF-21 system development formally complete, KAI said the first two production Boramae fighters are undergoing verification flights and are expected to be handed to the Republic of Korea Air Force around September-October 2026, with eight jets due by year-end. The company is also positioning for a follow-on production order from Seoul beyond the initial 20-aircraft Block I contract, while export talks with Indonesia continue despite Jakarta scaling back its commitment. The first delivery will mark the KF-21's transition from development program to operational fighter, a decisive proof point for export campaigns in the Middle East, Southeast Asia, and Europe.
Korea Aerospace Industries and the Defense Acquisition Program Administration held the KF-21/IF-X System Development Completion Ceremony at KAI headquarters in Sacheon, South Gyeongsang, on July 29, 2026, formally closing the roughly ten-year development program launched in 2015. About 300 people attended, including DAPA Minister Lee Yong-chul, Ministry of National Defense, Agency for Defense Development and ROK Air Force officials, representatives of some 500 domestic partner companies, defense ministry and PTDI officials from co-development partner Indonesia, and technical partner Lockheed Martin. The program completed basic and detailed design, prototype manufacturing, ground testing and flight testing, logging more than 1,600 flight trials and verifying over 13,000 test conditions without a single accident, and passed combat suitability certification in May 2026 followed by initial type certification. The 8.8 trillion won ($6.04 billion) effort, begun to replace ageing F-4 and F-5 fleets, now moves into full-rate production: the first mass-production aircraft is scheduled for delivery to the ROK Air Force around September 2026, with an initial batch of 40 air-to-air-capable jets by 2028 and a further 80 enhanced aircraft by 2032 toward a 120-aircraft target.
Indonesia has shifted from co-producing the KF-21 to buying finished aircraft, materially narrowing what was meant to be the program's anchor export. Jakarta cut its development cost contribution to 600 billion won and reduced the scope of technology transfer, and its expected purchase volume has fallen to roughly 16 units worth about 3 trillion won — down from the original plan of 48 aircraft assembled domestically. Budget constraints drove the retreat, and Indonesia has simultaneously signed for Italian M-346FA light combat aircraft while reportedly weighing French Rafales, U.S. F-15s, Turkish Kaan fighters, and Chinese J-10Cs. KAI President Kim Jong-chul has said negotiations across Southeast Asia and the Middle East exceed 200 units, with the Philippines, UAE, and Malaysia also in discussions, but analysts frame the Indonesian outcome as the first real test of whether Korea can convert KF-21 interest into finished-aircraft exports.
South Korea's KF-21 Boramae supersonic fighter has formally completed its system development phase, closing out roughly ten years of prototype manufacturing and flight testing that began in 2015. The Defense Acquisition Program Administration scheduled a "KF-21/IF-X System Development Completion Ceremony" for July 29 at Korea Aerospace Industries in Sacheon, Gyeongnam, with Ministry of National Defense, Joint Chiefs of Staff, and Air Force officials attending alongside Indonesian defense and embassy representatives from the co-development partner. The milestone moves the program into full-rate production and export marketing: the ROK Air Force plans to induct roughly 120 aircraft by 2032, with about 10 this year, 30 by 2028, 40 by 2030, and 40 by 2032. Block-II upgrades covering engine, avionics, and weapons integration are targeted for completion by 2028. The first mass-production aircraft rolled out on March 25, 2026, and Air Force deliveries of air-to-air-capable Block-I jets begin in the second half of 2026.
The Royal Thai Navy is expected to name a preferred bidder within the month for a 4,000-ton frigate with a budget of about 17.5 billion baht ($523 million), potentially expanding to roughly $2.7 billion with three follow-on ships. Thailand is reportedly leaning toward Hanwha Ocean's Ocean-40F design over HD Hyundai Heavy Industries and Turkey's ASFAT, though no official winner had been announced as of July 17. HD Hyundai reportedly offered around 40 percent local content against a 20 percent requirement. The competition remains a pending selection, not a signed deal.
A Korean defense-industry official said the KF-21 Boramae's first export contract "will be announced soon," with Indonesia (reportedly around 16 units, roughly 3 trillion won), the UAE, the Philippines, and Malaysia cited as leading candidates; KAI President Kim Jong-chul said talks covering 200-plus aircraft are underway. Full-scale mass production is running, and the first mass-produced KF-21 is due to be delivered to the Republic of Korea Air Force in September 2026. KAI plans a "KF-21/IF-X System Development Completion Ceremony" in late July. No binding export contract has been signed yet — the first-customer decision remains a watch item.
Korean defense startup Airvility, dubbed "Korea's Anduril," is developing the AB-U60 VTOL fixed-wing UAV (3m wingspan, 60kg MTOW) that carries four interceptor drones with a 30km range for counter-drone operations. Founded in 2023 by alumni from ADD, Hyundai Motor, and LG Electronics, the company targets 10 billion won revenue for 2026 with mass production planned for late 2026. PoC operations are scheduled for H2 2026 with the Korean military, Abu Dhabi, and Thai SOEs.
Despite strong Korean defense industry presence, Malaysia's DSA 2026 exhibition (April 20-23) yielded fewer procurement contracts than previous editions. However, the event still produced notable deals including LIG D&A's landmark $94M K-SAAM Haegung export contract and contracts with HD Hyundai Heavy Industries. Boustead signed agreements with Korean and European firms. Lunas inked seven MOUs valued at RM300 million involving Hyundai Heavy Industries among others. Analysts noted that Southeast Asian procurement cycles are lengthening due to tighter defense budgets, though demand for affordable, rapidly deployable Korean systems remains strong.
LIG Defense & Aerospace signed a $94 million (KRW 140 billion) contract with Malaysia's Ministry of Defence for the K-SAAM Haegung ship-launched surface-to-air missile — the system's first-ever export. The contract was signed at DSA 2026 in Kuala Lumpur on April 22. The Haegung missiles, capable of Mach 2 speed and 20 km range, will be installed on Royal Malaysian Navy Littoral Mission Ships (LMS Batch 2) built by Turkish firm STM. The deal marks LIG D&A's expansion into Southeast Asian naval defense markets.
A total of 23 Korean defense companies participated in DSA 2026 in Kuala Lumpur (April 20-23), including major systems integrators LIG Defense & Aerospace and HD Hyundai Heavy Industries alongside SMEs and regionally based firms. The Korea Pavilion, operated by DAPA, KRIT, and KDIA, showcased hull-mounted sonars, underwater drones, AI-based command decision support systems, and other advanced defense technologies targeting the Southeast Asian market. LIG D&A's $94M Haegung missile contract with Malaysia highlighted the event.
DAPA is operating an integrated Korea Pavilion at Defense Services Asia (DSA) 2026, held April 20-23 at MITEC in Kuala Lumpur. Eight Korean defense firms are showcasing hull-mounted sonars for minesweepers, underwater drones, and AI-based command decision support systems. DSA 2026, Asia's largest defense exhibition, draws approximately 1,400 defense companies from around the world and officials from more than 60 countries. The pavilion includes buyer-matching consultation sessions to generate tangible export outcomes in Southeast Asia.
South Korea reached a working-level agreement to transfer the fifth KF-21 Boramae prototype to Indonesia, formalizing a revised financial settlement disclosed through DAPA documents submitted to the National Defense Committee. Indonesia has paid 536 billion won of a reduced 600 billion won contribution, with the remaining 64 billion won due by June 2026. The transfer advances negotiations for a separate 16-aircraft export contract.
South Korean President Lee Jae-myung and Indonesian President Prabowo Subianto agreed to strengthen collaboration in energy, strategic industries, and defense during an April 1 summit. The leaders reaffirmed commitment to the KF-21 joint development program and discussed expanded defense procurement including the 16-aircraft KF-21 export deal, marking a deepening Indo-Pacific defense partnership.
South Korea is finalizing its first KF-21 Boramae export agreement with Indonesia for 16 fighters during President Prabowo's state visit. Indonesia has committed to purchasing 48 KF-21 jets total, with PT Dirgantara Indonesia participating in production.
Counter-drone startup Nearthlab signed a $10M export contract with a Middle Eastern country for its "Kaiden" autonomous interceptor drone, and secured a separate export deal with a Southeast Asian nation. The company is planning the first defense-sector drone IPO in South Korea, and signed an MOU with Malaysia's AIROD for MRO cooperation.
KAI accelerated FA-50M Block 20 deliveries to the Royal Malaysian Air Force, increasing from the originally planned four to six aircraft arriving by end of 2026. The remaining 12 of the 18-unit order will follow from 2027. A follow-on order of 18 additional FA-50M is considered very likely.
At IndoDefense 2025, Indonesia and South Korea signed a new agreement reaffirming Indonesia's planned purchase of 48 KF-21 Boramae aircraft with PT Dirgantara Indonesia (PT DI) production participation, paving the way for the first KF-21 export.
The Philippines signed a contract with KAI for 12 additional FA-50 light combat aircraft along with upgrades for previously delivered jets, expanding the Philippine Air Force's Korean-built combat fleet.
The Philippines has signed a contract with Hanwha Ocean for two HDC-3100 corvettes to modernize the Philippine Navy's surface fleet. The 3,100-ton vessels will be the most capable warships in the Philippine fleet.
Malaysia has signed a contract for 18 FA-50M Block 20 light combat aircraft equipped with the Phantom Strike AESA radar, marking the most advanced FA-50 variant sold to date.