Production cost hike raises risk of KF-21 rollout delay
2026.05.12 15:00
| A KF-21 Boramae takes off from a runway in Sacheon, South Gyeongsang Province, during its first test flight on July 19, 2022. (DAPA) |
South Korea’s plan to deploy 120 KF-21 Boramae fighter jets by 2032 may face delays as rising production costs put growing pressure on the defense budget, according to data submitted to the National Assembly.
The cost of producing 80 additional KF-21 jets under the follow-up production phase has risen by nearly 30 percent from the initial estimate, mainly due to inflation, exchange rate increases and supply chain instability caused by global conflicts.
According to data submitted by the Defense Acquisition Program Administration to People Power Party Rep. Kang Dae-sik of the National Assembly’s Defense Committee, the cost of producing the 80 jets was estimated at 14.24 trillion won ($9.58 billion) when the Defense Project Promotion Committee approved the midterm defense plan in August 2024.
But after DAPA requested an in-depth cost review from the Korea Institute for Defense Analyses ahead of a decision on the follow-up production strategy, the institute said in March that the project would require 18.44 trillion won.
The revised estimate is 4.19 trillion won, higher than the earlier projection, marking a 29.5 percent increase.
DAPA attributed the increase to higher costs for additional air-to-ground weapons capabilities, as well as inflation, currency fluctuations and unstable supply chains.
The final budget for the follow-up production phase is expected to be confirmed later this year after consultations with the Finance Ministry.
The KF-21 program is being carried out in two phases. The first production phase involves the first 40 jets focused mainly on air-to-air missions, while the follow-up phase will produce another 80 jets equipped with locally developed long-range air-to-ground missiles.
Under the original plan, the Air Force was to deploy the first 40 jets between 2026 and 2028 and add the remaining 80 between 2029 and 2032, bringing the total fleet to 120.
The KF-21 is expected to replace the Air Force’s aging F-4 and F-5 fighter jets, with the retirement schedule for the older aircraft planned around the new fighter’s deployment timeline.
But DAPA is reportedly discussing a possible delay in the KF-21 deployment schedule with the Air Force as the budget burden grows larger than expected.
One option under review is to complete the deployment of the first 40 jets by 2029, about a year later than originally planned, and push back the deployment of the remaining 80 jets by two to three years to around 2034 or 2035.
The first production phase has also seen a cost increase. The cost of producing the initial 40 jets was first estimated at 7.93 trillion won in August 2024, but was later finalized at 8.38 trillion won after a budget adjustment.
DAPA said the increase reflected higher exchange rates, inflation and a more realistic assessment of specific requirements.
The KF-21 system development project, launched in 2015, has a budget of 8.81 trillion won. Combined with about 26.8 trillion won in production costs for 120 jets and an estimated 26 trillion won in maintenance and operation costs over the next 30 years, the total cost of the program is expected to exceed 60 trillion won.
The KF-21 is a 4.5-generation fighter jet equipped with an integrated electronic warfare system. It has a maximum speed of Mach 1.81, a range of 2,900 kilometers and a weapons payload capacity of 7.7 tons.
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