Why halting KF-21 collaboration with Jakarta could cost Seoul more than money



Analysis Why halting KF-21 collaboration with Jakarta could cost Seoul more than money Dispute with Indonesia risks South Korea’s finances, regional ties and aerospace industry credibility John LeeOctober 17, 2023 SHARE COPY LINK FACEBOOK X LINKEDIN MASTODON The sixth and final prototype of the KF-21 conducts its first flight test, June 28, 2023 \| Image: Korea Aerospace Industries Defense cooperation between South Korea and Indonesia faces potential disruption following a recent statement from Seoul’s Defense Acquisition Program Administration (DAPA). The announcement, hinting at the possible termination of Indonesia’s role in the KF-21 Boramae fighter jet project by the end of October due to financial and technological disagreements, raises significant concerns. The primary risk lies in the sudden financial strain for South Korea, potentially requiring the country to absorb unforeseen costs originally meant to be shared. A secondary risk that cannot be understated is the potential diplomatic fallout with one of the largest countries in the Indo-Pacific, threatening to © Korea Risk Group. All rights reserved. No part of this content may be reproduced, distributed, or used for commercial purposes without prior written permission from Korea Risk Group. LATEST ANALYSIS 01South Korea bank hacks expose weak links beyond core financial systems 02Lee-Zelensky feud exposes South Korea’s widening Ukraine policy dilemma 03Lee Jae Myung’s ‘pacemaker’ strategy tests South Korea’s leverage with Trump 04Trump’s Korea investment victory lap masks safeguards Seoul still controls 05North Korean POW dispute tests Seoul-Kyiv trust and future Ukraine policy 06South Korea’s CPTPP push exposes the cost of turning trade gains into consensus 07AI storage boom gives South Korea battery makers an EV overcapacity lifeline 08South Korea’s Mexico strategy runs into the hard limits of USMCA politics

Analysis

Why halting KF-21 collaboration with Jakarta could cost Seoul more than money

Dispute with Indonesia risks South Korea’s finances, regional ties and aerospace industry credibility

John LeeOctober 17, 2023

Why halting KF-21 collaboration with Jakarta could cost Seoul more than money

The sixth and final prototype of the KF-21 conducts its first flight test, June 28, 2023 | Image: Korea Aerospace Industries

Defense cooperation between South Korea and Indonesia faces potential disruption following a recent statement from Seoul’s Defense Acquisition Program Administration (DAPA).

The announcement, hinting at the possible termination of Indonesia’s role in the KF-21 Boramae fighter jet project by the end of October due to financial and technological disagreements, raises significant concerns.

The primary risk lies in the sudden financial strain for South Korea, potentially requiring the country to absorb unforeseen costs originally meant to be shared.

A secondary risk that cannot be understated is the potential diplomatic fallout with one of the largest countries in the Indo-Pacific, threatening to

Why halting KF-21 collaboration with Jakarta could cost Seoul more than money

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John Lee