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Korea Aerospace Industry KOREA AEROSPACE INDUSTRY 2015 INDUSTRY AEROSPACE KOREA KOREA AEROSPACE INDUSTRIES ASSOCIATION Chairman’s Message Activities of KAIA Current Status of Korea Aerospace Industry Aircraft Programs Space Programs Seoul Int’l Aerospace & Defense Exhibition 2015 Members and Products 2 Contents 02 Chairman’s Message 03 Activities of KAIA 04 Current Status of Korea Aerospace Industry 08 Aircraft Programs Space Programs 21 Seoul Int’l Aerospace & Defense Exhibition 2015 30 Members and Products 32 1 Chairman’s Message he aerospace industry is a high value- Korea’s domestic aerospace industry is expected added industry, the culmination of the to continue to grow this year. Based on the latest, cutting-edge technology and at ‘Basic Plan for the Development of Aircraft the same time, an important industry Industry’, the blueprint which aims to place Twhich forms the foundation of national defense Korea among the top 7 global position by 2020, and national security. existing projects will follow the growth pattern In less than a generation, the Republic of Korea and new projects will be launched smoothly. In overcame its dire situation akin to wasteland particular, this year, the KFX project and Light and created supersonic advanced trainers, Armed Helicopter, civil helicopter project and state-of-the-art helicopters, and satellites, and other major programs are scheduled to begin. continuously developed its aerospace industry. In addition, other important national aerospace The Republic of Korea has recently made industry developments such as the Surion-based significant achievements even amidst global helicopter variant, commercial aircraft project, financial expectations and uncertainties. In the KSLV-IIⅡ etc are planned. If these projects are field of aircraft, the Korean helicopter Surion successful, Korea’s goal of ‘producing 20 billion development was officially completed, making dollars and exporting 10 billion dollars to enter South Korea into the world’s 11th country to the Global 7 tier in aerospace industry by 2020’ indigenously develop helicopters, and the will soon be reached. Korean supersonic aircraft T-50i was exported New growth and change are needed for the to Indonesia in a ferry flight, making Korea the aerospace industry to become the new engine world’s sixth country to export a supersonic of growth that ensures the future of Korea’s aircraft. Also, Korea made great achievement economy and to become a core momentum that in export by signing a 1.1 billion dollar deal to results in creative economy. deliver FA-50 aircraft to Iraq, the largest amount For this end, the Korea Aerospace Industries in the history of national defense export. In the Association(KAIA) will continue to support the field of space, Korea successfully launched the government to establish aerospace industry Naro rocket, KOMPSAT-5 and STSAT-3. policies and conduct studies and researches, and it will continue to voice the opinion of the Korean aerospace industry, hold international Aerospace &Defense exhibitions, and support the marketing for this industry in order to contribute to the growth of the aerospace industry. Thank you. Chairman Korea Aerospace Industries Association 2 Activities of KAIA KAIA places the main focus of its activities on the expansion and evolution of the Korea aerospace industry. A brief outline of these activities is as follows. 1. Aerospace Industrial Policies Promotionuuuuuuuuuuuuuuuuu uuuuuuuuuuuuuuuuuuuuuu uuuuuuuuuuuuuuuuuu uuuuuuuuuuuuuuuuuu u uuuuuuuuuuuuuuuuuuuu uuuuuuuuu uuuuuuuuuuuuuuuuuuuuuu 4. International Aerospace Exhibitions •Request and recommend to the government ⅡⅡ •Organize the International Aerospace on aerospace budget Exhibition held in Korea every two years •Propose the promotion action plan of to promote trade and acknowledge the aerospace industry to the government capabilities of the Korea aerospace industry ⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡ Ⅱ •Participate in international aerospace 2. Aerospace Industrial Foundation Build-up exhibitions such as Paris, Farnborough and and Maintenance Berlin •Investigation of domestic and overseas ⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡ aerospace industries movement 5. Survey of Aerospace Statistics, Facts and Ⅱ •Research and Development (R&D) of future Figures aerospace technologies Ⅱ •Survey domestic and overseas aerospace - Deliver R&D through public subsidies industry production and export information - Commission research contracts to related Ⅱ Ⅱ •Publish sales, production and export data industries for KAIA members Ⅱ •Operation of EDI (Electronic Data ⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡ Interchange) Center 6. Liaise with Related Organizations - Management of electronic procurement Ⅱ Ⅱ •Liaise and coordinate with related ordering system in Korea aerospace government authorities industries Ⅱ Ⅱ •Contact and coordinate with universities, ⅡⅡⅡⅡ ⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡ research institutes and other organizations 3. Relationship with Overseas Aerospace ⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡ Industries and Associations 7. Public Relations and Publication Ⅱ •Interact with overseas aerospace industries Ⅱ •Disclose press interviews and presentation and associations data - Major associations: AIA(USA), ⅡⅡ •Publication of the magazine ‘Korea SJAC(Japan), ADS(UK), GIFAS(France) and Aerospace Industry’ and ‘Statistical BDLI(Germany) yearbook’ Ⅱ •SupportⅡ arrangements for KAIA members to ⅡⅡⅡ ⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡ participate in international events 8. Education for the high skilled manpower ⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡⅡ in aerospace industries Ⅱ •Research and analyze aerospace industry jobs Ⅱ •Identify education needs and develop programs Ⅱ •Operate free education and training programs for incumbent employees 3 Current Status of Korea Aerospace Industry roduction value in 2013 was 3.6 billion dollars, a 34% increase compared to the previous year despite the global financial situation mixed with both expectations and uncertainties. By program, export of commercial aircraft parts to Boeing and Airbus took up approximately 32%, T-50 related aircraft production 21%, KUH(Korean Utility Helicopter, Surion) 17%, aircraft Pmaintenance 8%, and engine parts and maintenance 9%. In the military field, existing T-50 and KT-1 related programs will continue to produce results, and other major state project system developments are scheduled to be launched such as the KF-X project, LAH(Light Armed Helicopter), and civil helicopter project. In the civilian field, B777, B787, A320, A350 and other existing projects and new project are forecast to increase production. Satellite, Space Launch Vehicle and other space-related projects are also expected to expand. (Table 1, Figure 1) Table 1. Production by Programs Unit : 1 million dollars Program 2013 2014(forecast) T-50 related projects 771 940 KT-1 related projects 78 164 F-16 related projects 36 39 F-15 related projects 11 8 KUH 612 579 Commercial aircraft parts 1,166 1,387 Engine maintenance 81 46 Engine parts 238 324 Fuselage maintenance 281 327 Space project 78 91 UAV project 91 113 Other 163 173 Total 3,606 4,191 Figure 1. Production by programs 5% 3% T-50 related projects 2% 21% KT-1 related projects 8% F-16 related projects F-15 related projects KUH 7% 2% 1% Commercial aircraft parts 0% 2% Engine maintenance Engine parts 17% Fuselage maintenance Space project UAV project 32% Other 4 Current Status of Korea Aerospace Industry In export by country, exports to the US(Boeing) took up 46%, while exports to France, UK, and Germany (Airbus) took up 25%. Thus, 71% of exports were to the US and Europe. This is a natural result stemming from the fact that commercial area takes up the majority of Korea’s export, and that Boeing and Airbus dominate the global aircraft market. The trend is pointing towards an expansion to global vendors such as VOUGHT, BELL, SPIRIT, KHI. Peru and Canada are rising in the list of countries for export. (Table 2, Figure 2) Table 2. Export by Country Unit : 1 million dollars Country 2012 2013 2014(forecast) US 689 764 873 France 66 210 253 Indonesia 248 194 4 UK 108 188 230 Japan 102 152 215 Peru - 56 119 UAE 35 33 32 Germany 37 13 22 Russia 11 11 27 Canada 6 8 8 Australia 9 7 9 Other 55 16 210 Total 1,366 1,652 2,002 N.B.) Based on export contracts, not customs clearance Figure 2. Export by Country Russia 0.7% Canada 0.5% UK 11.4% Germany 0.8% Japan 9.2% US 46.2% France 12.7% UAE 2.0% Indonesia 11.7% Peru 3.4% Australia 0.4% US 46.2% UK 11.4% UAE 2.0% Canada 0.5% France 12.7% Japan 9.2% Germany 0.8% Australia 0.4% Indonesia 11.7% Peru 3.4% Russia 0.7% Other 1.0% 5 Current Status of Korea Aerospace Industry In domestic production by demand, dependence on military demand fell from over 70% in the past to 60% due to the growth of commercial sector, but the ratio is still far from that of the global market(military 20 : commercial 80). In order to increase production for the commercial sector, the domestic demand, which is very low compared to exports, must be increased. (Table 3, Figure 3) Performance in the space sector was low, the ratio between production in aviation and space being 9:1. At the end of last year, the government announced the ‘Mid-to-Long Term Space Development Plan’ which was meaningful in that it detailed the development of space industry. The first goal is to export over 100 billion won worth of satellites by 2017. Along with this first goal, is to build KSLV(Korea Space Launch
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