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Korea Herald
25-05-2025
- Business
- Korea Herald
S. Korean defense SMEs target Southeast Asia at LIMA 2025
By Hwang Joo-young and Joint Press Corps LANGKAWI, Malaysia — A group of small and mid-sized South Korean defense and technology firms participated in Southeast Asia's largest defense exhibition, LIMA 2025 as part of the Korea Pavilion organized by the Korea Defense Industry Association. While not as high-profile as companies specializing in full-scale platforms or missile systems, these firms are making their pitch to expand from a domestic customer base into export markets, offering niche, narrative-driven solutions. Augmented Knowledge, a company specializing in immersive training technology, showcased a mixed-reality simulation for aircraft maintenance. When a visitor put on the headset, a virtual 3D model of a Boeing 737's landing gear appeared, accompanied by on-screen instructions and voice prompts guiding the user through the steps needed to take it apart. Saying 'next page' moved the simulation onto the next step. The system is powered by an artificial intelligence engine trained on hundreds of thousands of pages from aircraft maintenance manuals. 'It can even be used on the actual aircraft during maintenance,' said Jo Geun-sik, CEO of Augmented Knowledge. 'It cuts task time in half.' Jo added that the company was preparing to enter Southeast Asia's aviation training and maintenance, repair and overhaul, or MRO, markets, beginning with Malaysia. Another participant, Fostec, specializes in optical fiber connectors used in missile defense systems that link launchers, radar and command centers. The company aims to position itself as a cost-effective alternative to dominant US and European suppliers. 'Our products cost about 70 percent of what American and European firms charge, and we can deliver in less than a third of the time,' a Fostec official said. The company's connectors are already used aboard South Korea's Ulsan-class frigates and are slated for installation in its next-generation destroyers. At the booth of Bstarcom, Malaysian and Indonesian military officers examined a backpack-style anti-drone weapon called the Hybrid Drone Gun, inquiring about its weight and operational range. The system integrates detection, jamming and spoofing capabilities to not only block a drone's signal but also redirect it using false GPS data. 'Some customers are price-sensitive, while others prioritize performance,' said a company manager. 'But all of them share the same concern: the need to protect critical infrastructure from drone threats.' This year, 12 South Korean defense and technology firms participated in the Malaysia-based exhibition, ranging from smaller firms including Bstarcom, Augmented Knowledge, Fostec and Fine Precision Industry to major players such as Korea Aerospace Industries, LIG Nex1 and HD Hyundai Heavy Industries. Government-affiliated institutions also took part, including the Korea Research Institute for Defense Technology Planning and Advancement, and the Defense Acquisition Program Administration. flylikekite@
Korea Herald
22-05-2025
- Business
- Korea Herald
KAI CEO calls for swift resolution with Indonesia on KF-21 issues
By Hwang Joo-young and Joint Press Corps LANGKAWI, Malaysia — Korea Aerospace Industries CEO Kang Goo-young on Wednesday expressed hopes for a swift resolution to tensions with Indonesia, which joined the company as a key partner in 2016 in the development of the KF-21 fighter jet — KAI's most advanced 4.5-generation aircraft project. The partnership has soured since 2023, when several Indonesian technical researchers were caught attempting to remove sensitive files from the joint development site in Korea using an unauthorized USB device. Five of the personnel are under investigation and remain banned from leaving the country, which is believed to be a source of growing dissatisfaction in Jakarta. Speaking with South Korean reporters at the LIMA 2025 defense exhibition in Langkawi, Kang said the issue should be 'resolved amicably within the legal framework,' expressing concerns that prolonged friction with Indonesia could complicate broader efforts to promote the KF-21 across the region. Despite speculation that Indonesia may be preparing to withdraw from the KF-21 program, Kang said he does not believe that to be the case. Indonesia still owes about 200 billion won ($145.8 million) in development costs — 100 billion won for this year and another 100 billion for next year — and according to Kang, the Indonesian government has already budgeted the 2024 payment. "That's not a signal of withdrawal," he said, adding that Indonesia is closely monitoring the KF-21's progress and is unlikely to walk away easily. Still, Kang acknowledged that deteriorating ties with Jakarta could shift the regional dynamic. He pointed to Indonesia's growing interest in co-developing Turkey's next-generation fighter, the KAAN, and said that if Malaysia were to join such an initiative, it could complicate South Korea's broader ambitions in Southeast Asia. Restoring cooperation with Indonesia, he stressed, is not just about preserving bilateral ties — it's also about maintaining strategic footing in a competitive market. Kang noted that many Southeast Asian countries view China as a growing security concern. 'In the past, China used battleships to project power,' he said. 'Now it's aircraft carriers.' This shift, he added, is prompting countries such as Indonesia, the Philippines and Malaysia to seek high-performance fighter jets. Although many would prefer the F-35, US export restrictions make that difficult, giving the KF-21 an opening. Interest in the aircraft is also growing. According to Kang, a high-ranking Malaysian official visited the KAI booth during the exhibition and asked how the KF-21 compares with China's J-10 fighter. On May 7, a Pakistani J-10 reportedly shot down a Rafale fighter from the Indian Air Force, which had acquired the jets from France. In that conversation, Kang said he positioned the KF-21 as a cost-effective but high-performance alternative to European fighters. 'Compared to 4.5-generation jets like the Rafale or Eurofighter, the KF-21 delivers 150 percent of the performance at 70 to 80 percent of the cost,' he told the official. In an effort to keep the partnership with Indonesia on track, South Korea has offered to reduce the country's share of development costs from 1.6 trillion won to 600 billion won. However, Jakarta has not officially responded. KAI has also submitted multiple petitions to the South Korean authorities requesting leniency for the Indonesian personnel involved in the data breach, arguing that the leaked materials likely did not contain core technical information. 'We hope this can be resolved through political and diplomatic channels,' Kang said. 'From a national interest standpoint, it's time to move beyond this dispute.'
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Korea Herald
21-05-2025
- Business
- Korea Herald
[From the Scene] S. Korean defense firms make mark in Southeast Asia at LIMA 2025
Missile-maker LIG Nex1 and aircraft producer KAI draw attention from Southeast Asian countries with affordable, adaptable solutions By Hwang Joo-young and Joint Press Corps LANGKAWI, Malaysia — Southeast Asia's largest defense exhibition opened Tuesday on the island of Langkawi, with South Korea emerging as a dominant presence amid growing regional demand for cost-effective, adaptable, and combat-proven weapons systems. The Langkawi International Maritime and Aerospace Exhibition, or LIMA 2025, kicked off its five-day run with some 510 exhibitors from 25 countries. Among them, South Korean defense firms Korea Aerospace Industries and LIG Nex1 drew particular attention for their growing regional presence and offerings that closely align with local defense needs. On the opening day, Malaysian Prime Minister Anwar Ibrahim visited the KAI booth, where CEO Kang Goo-young briefed him on the FA-50M's active electronically scanned array radar, aerial refueling capabilities and delivery timeline. 'You'll be able to see the FA-50M flying over Langkawi at the next LIMA,' Kang told the prime minister. In 2023, Malaysia signed a contract to procure 18 FA-50M jets, marking the country's first-ever purchase of Korean-made fighter aircraft. The jets are scheduled for delivery in 2026. KAI, in particular, is rapidly expanding its footprint in Southeast Asia — a trend that is also drawing interest from global defense partners. European missile manufacturer MBDA mounted its Brimstone air-to-ground missile on a mock-up of the FA-50, signaling its intent to align with Korea's growing platforms. 'Markets like Indonesia and Malaysia, where KAI is already active, are strategically attractive entry points for us,' said Savio Babu, MBDA's airborne technical executive. Babu also cited Indonesia's role in the KF-21 program and Malaysia's potential follow-up FA-50 order as key reasons MBDA is promoting compatibility with KAI aircraft — aiming to appeal to both current and prospective users. LIG Nex1, meanwhile, attracted attention with its naval surface-to-air missile system K-SAAM, branded as Haegung in Korea. The company, which recently opened a regional office in Kuala Lumpur, is actively pursuing opportunities across Southeast Asia, where maritime security needs are on the rise. Designed to defend warships from incoming threats, Haegung is currently under review by the Malaysian Navy. 'Haegung is gaining traction because of our strengths in delivery timelines, technology transfer, and long-term maintenance support,' an LIG Nex1 official said. High-ranking officers from the Vietnamese Navy also visited the booth and inquired about integrating Haegung into smaller vessels. A formal presentation on the company's full shipborne combat system was requested, the official added. 'There's a view in the industry that once a country starts showing serious interest in a system, its neighbors tend to take notice — and often follow,' the LIG Nex1 official said. 'In such cases, if a South Korean defense firm gains a foothold in one country, that success could serve as a bridgehead into the broader Southeast Asian market.' Meanwhile, major US players such as Lockheed Martin and Boeing were notably absent from this year's exhibition, which some observers interpret as a reflection of shifting dynamics in the region's defense procurement priorities. Another industry official at the event, speaking on condition of anonymity, said the absence of these traditional defense giants underscores how tightening budgets and growing operational demands are pushing many buyers in the region to seek affordable, field-tested solutions with flexible support structures — rather than high-end, legacy systems. 'You can see countries like Iran, China and Russia also marketing aggressively here,' the source added. 'Southeast Asian countries are less concerned with geopolitical blocs and more focused on securing the right capabilities on the right terms.' flylikekite@
