the past 30 years,” said Shep Hill, presi- sales in both business units.” products here are the backbone of the at a glance dent of International and senior During its 60-year military partnership ROK Air Force, and Korea represents one Official name: Republic of Korea vice president of Business Development with the , the nation has of the largest international markets for us,” and Strategy. often turned to Boeing and its heritage said Chris Chadwick, president, Boeing Location: On the Korean Peninsula The nation’s economic rebirth and its companies to help equip its defense Military Aircraft. between the Yellow Sea to the west and strategic position on the Korean Peninsula forces, starting with Douglas Skyraiders In the coming months, Korea is likely to the East Sea to the east; only bordering ROKstar have made the Republic of Korea a major during the Korean War. Since then, Boeing request bids for its third jet-fighter acquisi- nation is the Democratic People’s is one of Boeing’s top markets Republic of Korea (North Korea) Boeing customer and supplier. It is a has delivered 30 CH-47D and HH-47D tion program since the early 2000s—FX-III. for both defense and commercial products market with two important military aircraft Chinook heavy-lift and air rescue helicop- Boeing will offer the F-15 Silent Eagle, a Area: 38,500 square miles (100,000 By Eric Fetters-Walp competitions on the horizon, as well as ters to the Republic of Korea Army and Air newly developed, stealthier version of the square kilometers), slightly larger than a customer for three of Boeing’s newest Force, making Korea the third-largest oper- F-15 the ROK Air Force already operates. the U.S. state of Indiana The Republic of Korea has emerged as a vibrant economic force and one of the commercial models. ator of Chinooks outside the United States. Eunjeong Bahn, the F-15K program’s Population: More than 48.7 million, world’s most technologically advanced nations in the 21st century. “In recent years it has consistently In 2002, Boeing won a multibillion- logistics support representative in Korea, ranks 26th highest in the world Korea isn’t large geographically—it would rank 38th among the 50 U.S. states—but been one of Boeing’s top markets,” said dollar contract over three competitors to said the next-generation Silent Eagle Official language: Korean its gross domestic product annually ranks in the top 15 internationally. Patrick Gaines, president of Boeing Korea. provide Korea with 40 F-15K Slam Eagle would be well-suited for the operational That’s a great achievement for a nation that suffered more than its share of war “Korea is an ideal ‘One Boeing’ market jet fighters. That was followed in 2008 with environment in and around Korea. Capital: and political turmoil during the past century. But with a culture dating back at least with our revenues being split almost another multibillion-dollar contract to pro- At present, Boeing is focused on Other key cities: , , 4,000 years, one of the world’s highest population densities and a historically important equally between Boeing Defense, Space duce 21 additional F-15K jet fighters, with helping deliver the remainder of its existing and location, it should be no surprise Korea has moved forward so fast. & Security and Commercial . deliveries continuing through next year. F-15K orders and providing support for Our work in-country often complements “It’s a very important market. Our the Republic of Korea’s Air Force fighter Gross domestic product, 2010 “It is a large and growing economy. They’ve done an amazing transformation over estimate: $1.47 trillion (U.S. dollars), ranks 13th worldwide GDP growth rate, 2010 estimate: 6.1 percent Largest export partners: , United States, and Direct Boeing employees in Korea: 190 Sources: The World Factbook, U.S. Department of State, Boeing

“Korea is an ideal ‘One Boeing’ market.” – Patrick Gaines, president of Boeing Korea

PHOTO: An F-15K Slam Eagle jet fighter on the run- way at Daegu Airbase, Korea. Over the past decade, the Republic of Korea has ordered more than 60 of the Boeing-built fighters.R epublic of Korea Air Force

36 OCTOBER 2011 BOEING FRONTIERS 37 fleet. Bahn said the complex F-15K fighters why the company was honored as a very profitable and need airplanes to keep have an impressive operational readiness 2010 Boeing Supplier of the Year. up with the growth requirements.” rate of 85 percent, which supports Boeing’s “I’m impressed with the quality of the Korea’s flag carrier, , recently future bid. “A happy customer often is a workmanship and the team’s dedication,” took delivery of its first Next-Generation Value return customer,” she said. Hall said. “We are getting it done right 737-900ER (Extended Range) featuring Korea’s government also is considering and on schedule.” the Boeing Sky Interior. It is among the first the acquisition of up to 36 AH-64D Apache On the commercial side, Korea’s airlines customers to purchase the 747-8 Freighter, chain attack helicopters. Additionally, Boeing are growing in response to passenger the 747-8 Intercontinental and the 787 Defense, Space & Security is working with demand. The nation’s airlines saw a Dreamliner. Korean carriers also hope to the ROK Air Force and ROK Army on record number of international passengers gain momentum from Pyeongchang’s Boeing has upgrading their Chinook helicopters. fly during May of this year, according successful bid to host the 2018 Winter built strong To meet its military surveillance needs, to the Ministry of Land, Transport and Olympic Games. Korea has ordered four Peace Eye aircraft, Maritime Affairs. Gaines sees more work with Korean relationships a 737-based Airborne Early Warning & Con- During the next 20 years, air travel in suppliers as Boeing defense and commer- trol aircraft similar to Australia’s Wedgetail Asia is expected to grow at an annual rate cial programs advance. He also forecasts with its and Turkey’s Peace Eagle models. The first of 6.7 percent. This rapid growth suggests growth opportunities for Boeing’s services South Korean Peace Eye recently was delivered to the that Korea will need more than 500 new in Korea. Boeing Training Services–Korea, ROK Air Force, while the next three are be- airplanes to meet demand, according to part of Boeing Flight Services, already suppliers ing modified by Korea Aerospace Industries Boeing forecasts. With Incheon Interna- provides flight training for Boeing and Air- in between now and late 2012. tional Airport serving as a major hub in bus aircraft at the training facilities of the Korean Air ordered its first Troy Hall, senior manager and on-site Asia, Korea’s commercial airline business two largest airlines in Korea: Korean Air commercial jetliner—a Boeing team lead for the Peace Eye program, said is well-positioned to benefit from future and Asiana. 707—in 1969 and launched the KAI team’s accomplishments show growth in the region’s air travel. “Being embedded with the customer Korea’s first aerospace manufac- “Korea was not as hard hit by the at their facility creates an invaluable under- turing company seven years later. global economic downturn,” standing of the customer’s training needs,” Now, the nation is a trusted sup- Gaines noted. “Both the said Soo-Mi Hong, business support man- plier for myriad Boeing products. major carriers and the ager for Boeing Training Services–Korea. “Boeing is in Korea, but Korea low-cost carriers The business, she added, also serves also is involved with Boeing,” said have been ; the Ministry of Land, Transportation Patrick Gaines, president of Boeing and Maritime; and other smaller customers. Korea. “Every time you see a com- With the shared security and economic mercial airplane fly by, or an F-15 or interests between Korea and the United an Apache, you’re seeing components States, Boeing actively has supported made here.” technology exchanges in defense prod- Korean Air Aerospace Division was the ucts and advocated the United States– first aerospace firm established in Korea. Korea Free Trade Agreement, Hill said. It has since partnered with Boeing to pro- The agreement is awaiting approval vide components for the 717, 747, 777 from both nations’ legislatures. and the 787 Dreamliner. Its high-quality “As Korea’s aspirations grow, we work earned it the title of Boeing Supplier can’t take anything for granted,” Hill of the Year in 2000 and 2006. said. “We need to keep our focus on Korea Aerospace Industries formed our customers there.” in October 1999 when Daewoo Heavy Kyung Yeon Kang, executive Industries, Samsung Aerospace, and on-time deliveries office administrator for Boeing Hyundai Space and Aircraft combined earned it a 2010 Boeing International in Seoul, said it’s into one enterprise. The company has Supplier of the Year award. gratifying to see the company become a prime supplier of 737 horizontal Boeing also owns part invest in both the country’s and vertical assemblies; it soon will begin of Korea-based Huneed Technologies manufacturing base and, through work on 787-9 composite wing ribs for to subcontract work in Korea’s Global Corporate Citizenship Commercial Airplanes. command, control, communications programs, its communities. For Boeing Defense, Space & Security, and networks market. “I am proud to be able to KAI manufactures AH-64 Apache helicopter “Many of Boeing’s supplier relationships PHOTOS: (Far left) An employee of Korea say that the company I work for and F-15 forward fuselages and in Korea began as part of our offset, or Aerospace Industries in Sacheon, Korea, works on one of three Peace Eye Airborne contributes to the Korean economy wings. KAI also is a key supplier on the local work placement, programs,” Gaines Early Warning & Control aircraft being and the Korean aerospace industry,” A-10 Wing Replacement Program. said. “And when you look at the quality modified by the company.A ssociated Press Kang said. n Additionally, KAI is making the extensive and value we have achieved, it’s clear (Above) Korean Air Aerospace Division [email protected] modifications necessary for the 737-based these relationships have grown into great workers perform maintenance on the engine Peace Eye Airborne Early Warning & Con- supplier partnerships.” of a 747-400 Freighter. The company pro- vides components for Boeing’s 717, 747, trol aircraft. The company’s high-quality, – Eric Fetters-Walp 777 and the 787 Dreamliner. Associated Press

38 BOEING FRONTIERS OCTOBER 2011 39 serve the low-cost, regional market that Boeing holds a market share of more operate all-Boeing fleets. These airlines than 60 percent in commercial aviation in Sky-high operate alongside the nation’s two long- Korea, “so we have a good opportunity to Good established, larger international carriers, be a big player there.” Korean Air and Asiana. Korean Air is A quick look at Korea’s major commer- opportunities among the first airlines to purchase three cial airlines: partners of Boeing’s newest commercial models— • Korean Air – Korea’s original airline, Boeing has more the 787 Dreamliner, the 747-8 Freighter Korean Air’s fleet of 112 passenger and the 747-8 Intercontinental. airplanes includes 18 -400s, Boeing supports than 60 percent of Both Korean Air and Asiana also have 18 777-200ERs, a dozen 777-300ERs ordered a notable number of 777-200ER and -300s, and 32 Next-Generation Korean the jetliner market (Extended Range) and -300ER models 737s; the remainder consists of Airbus in South Korea in recent years—with the former having models. The airline also owns and communities taken delivery of its 30th 777 in May. On operates 24 747-400 Freighters for Demand for air travel in Korea has the cargo side, Korean Air ranked second its cargo business. through a increased rapidly in recent years, driving worldwide last year in scheduled freight • – One of the two wide range of growth for the mix of low-cost domestic tonne kilometers, according to the largest airlines in Korea, Asiana oper- and regional airlines and large international International Air Transport Association. ates two -400s, 767-300s investments carriers serving the nation. “Our estimates are that Korea will need (seven passenger and one cargo), 11 Four of the five newest carriers that more than 500 new airplanes by 2030, so 777-200ERs and 12 Boeing 747-400s, Teaching young people about it’s a big market and one that’s growing,” with a mix of passenger-only 747s, the environment, supporting said Fariba Alamdari, vice presi- combination passenger/cargo 747s orphaned children and helping dent of Market and Value and cargo-only jets. It also operates underprivileged youth learn more Analysis for Commer- 38 Airbus jets. about business are just three programs cial Airplanes. • – Launched in 2005 and assisted by Boeing’s community She added based in , this low-cost carrier partnerships in Korea. flies an all-Boeing fleet of eight Next- Every year, in partnership with Generation 737-800s. The airline flies thousands of nonprofits and other within Korea and to destinations in organizations around the globe, Boeing Japan and East Asia. invests in programs that target areas that • – A low-cost subsidiary of help build and sustain strong communi- Asiana, Air Busan flies several routes ties: the environment; health and human Seoul, which between Korea and nearby nations in services; arts and culture; and education sponsors after- Asia. Its fleet includes three 737-400s and civic awareness. school counseling and three 737-500s. Boeing Korea in 2010 made community and activities in high-poverty investments in eight different organizations, areas; Haesung Orphanage, which •  – This low-cost and employees are active in their communi- provides therapy for orphans; Work of corporate citizenship and encourages carrier, which first flew in 2009, ties across Korea, including participation in Together Foundation, organizing arts employees to participate.” is an all-Boeing airline, flying six Boeing’s annual Global Day of Service. programs at children’s welfare centers; Next-Generation 737-600s and – Eric Fetters-Walp The Korea Green Foundation, a Junior Achievement Korea, which edu- 737-700s on short-haul routes grant recipient, leads a “Climate Change cated more than 10,000 underprivileged within Korea and to other Classroom” program that teaches children, students last year in economics and busi- nearby destinations. PHOTO ILLUSTRATION: (Far left) A especially those from low-income families, ness; and a science education program 747-8 Intercontinental in Korean Air livery. •  Jin Air – This subsidiary of about environmental issues. aimed at improving teachers’ skills. Korean Air has seven 747-8 Freighters and five 747-8 Intercontinental airplanes Korean Air is a low-cost airline “Throughout this program, these future Additionally, Boeing employee volun- on order. Mi-Kyoung Choi/boeing flying an all-Boeing fleet of five environmental leaders will recognize the teers have prepared and served meals Next-Generation 737-800s importance of eco-friendly management of for homeless people in Seoul, helped PHOTO: (Above) Boeing Korea volunteers between Korea, multiple desti- businesses and the importance of building disabled residents take a mountain excur- work on a project with tenants at the House “Our estimates are that Korea nations in East Asia and Guam. a sustainable future to set an example sion, played with orphaned or abandoned of Love facility for the disabled in Namhae, Korea. Associated Press • T’way Airlines – This low-cost for generations to come,” said Yul Choi, children, and taken on maintenance and will need more than 500 new carrier has a fleet consisting of president of the Korea Green Foundation. cleanup activities at the Changdeokgung three Next-Generation 737-800 Other programs receiving community palace grounds in Seoul. airplanes by 2030, so it’s a big airplanes. It flies only domestic investments include Young Falcons “Having the opportunity to give back market and one that’s growing.” routes. of Korea, which teaches awareness of to the community means a lot to me – Eric Fetters-Walp environmental issues in aerospace and and my team,” said Sang Mun, senior – Fariba Alamdari, vice president of Market and Value Analysis other industries; the Pearl S. Buck manager for Phantom Works International for Commercial Airplanes Foundation Korea, focused on cultural Experimentation–Korea. “I am proud that understanding; Community Chest of Boeing understands the importance

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