South Korea’s Defense Acquisition Program Administration’s (DAPA) announcement in December that it selected Embraer’s C-390 Millennium for its Large Transport Aircraft (LTA) II project propels the Republic of Korea Air Force (ROKAF) to become the first Asian operator of the Brazilian-made tactical transport aircraft.

However, it also introduces uncertainty for Korea Aerospace Industries’ (KAI) MC-X proposal for an indigenous tactical transport aircraft.

Chosen over Airbus’ A400M and Lockheed Martin’s C-130J, the C-390 Millennium’s selection for the $54.4 million (710 billion won) project exemplifies South Korea’s balancing act between foreign procurement and indigenous development.

The selection of the C-390 Millennium aligns with the ROK’s long-standing efforts to balance indigenous development with foreign procurements, thus making a statement about its commitment to modernization, technological innovation and strategic partnerships.

In a statement issued to Yonhap News Agency, a DAPA spokesperson highlighted that acquiring the C-390 aircraft would enhance ROKAF’s air transport capabilities, particularly in supporting peacekeeping operations.

Although the exact number of C-390s to be procured remains undisclosed by both DAPA and Embraer, reports from Yonhap suggest that an order for three aircraft is anticipated.

MULTI-ROLE AIRCRAFT

The C-390 Millennium, first flown in 2015, is Embraer’s heaviest aircraft, and it signifies a departure from conventional designs in its class, primarily due to its twin turbojet engines. The company claims this feature enhances the aircraft’s speed and range and increases its payload capacity to 26 tons, surpassing the C-130H’s 19-ton maximum payload.

Beyond its technical specifications, its versatility allows for diverse mission types, reflecting ROKAF’s need for multifunctional military assets. Equipped with various equipment packages, the C-390 can transition from a cargo transporter to roles such as aerial refueling, firefighting, search and rescue operations and medical evacuations.

Thus, South Korea’s decision to procure the C-390 highlights a shift in ROKAF’s strategy toward high-capability and versatile military assets, enhancing its operational capabilities to address a broad spectrum of modern-day defense challenges.

Republic of Korea Air Force’s transport aircraft air mobility training, Jan. 15, 2020 | Image: Republic of Korea Air Force

STRATEGIC PARTNERSHIP

Following the Defense Acquisition Program Promotion Committee meeting where the selection of the Embraer C-390 Millennium was announced, a DAPA official told reporters that several factors influenced the decision.

While the competing offers for the LTA II project were comparable in cost and performance, Embraer’s proposal stood out due to its advantageous industrial offset package. The arrangement involves South Korea’s aerospace industry’s participation in the assembly of the C-390, a factor that aligns with the country’s broader objective of enhancing its technological and industrial base.

Additionally, the deal encompasses producing a “significant” portion of the C-390’s parts by South Korean partner companies. This aspect of the procurement goes beyond the immediate enhancement of ROKAF’s airlift capabilities, signaling a move toward greater self-sufficiency in defense technology.

Establishing a local maintenance, repair, and overhaul provider under this agreement is also anticipated to contribute to developing domestic aerospace expertise and infrastructure.

The procurement decision also reflects lessons drawn from international experiences, akin to the Netherlands’ selection of the C-390 following its operational challenges during the 2021 Afghan evacuation missions. During the evacuation from Kabul, a Dutch aircraft — an aging Lockheed Martin C-130 — suffered a technical failure that temporarily stopped it from conducting flight operations.

OPPORTUNITY COSTS

South Korea’s selection of Embraer’s C-390 Millennium casts a new light on the future of the KAI’s MC-X, a proposed indigenous tactical transport aircraft. The MC-X, unveiled by the KAI with a scale model at the DX Korea 2022 exhibition, is positioned as a direct competitor in the same category as the C-390.

With the KAI’s estimation of a development timeline of seven to eight years and a memorandum of understanding for joint development with the United Arab Emirates (UAE), the MC-X represents a significant stride in South Korea’s pursuit of an autonomous defense industry.

However, the C-390’s selection introduces uncertainty for the MC-X project. The MC-X, slightly larger and capable of carrying 30 tons in payload – four tons more than the Millennium, was poised to be a robust competitor in the tactical transport market.

The KAI had even presented a roadmap for the MC-X at the 2023 Seoul ADEX defense exhibition, showcasing its versatility for additional missions, including as an aerial tanker, maritime patrol and an unmanned aircraft mothership.

The MC-X faces numerous challenges. As neither DAPA nor ROKAF has sought to make the MC-X an official development program, the lack of firm orders from South Korea significantly impacts its commercial viability, as relying solely on a small production run for the UAE would lead to prohibitively high unit costs.

Additionally, the continued dominance of Lockheed Martin’s C-130J in the market for operators seeking to replace their older C-130s adds another layer of challenges for the MC-X.

In this context, the participation of South Korean companies in the assembly of the C-390 could be a strategic pivot. This collaboration allows South Korean aerospace companies to gain valuable experience in transport aircraft projects. Such experience could be instrumental in future indigenous developments, including the MC-X.

By working on the C-390, South Korean companies could develop specialized mission equipment packages, which might not only support the C-390’s operations but also provide insights and technologies applicable to the MC-X or similar projects.

This situation illustrates South Korea’s challenges in aligning its immediate operational requirements with its long-term ambitions of fostering a self-reliant defense industry. The procurement of the C-390 Millennium, while filling an immediate operational gap, also sets the stage for a deeper evaluation of the role and future of indigenous projects like the MC-X.

Edited by John Lee