The South Korean government has unveiled plans to invest a staggering 49.4 billion won (approximately $35.7 million) to upgrade its FA-50 fighter jets, with a keen eye on meeting global demand and expanding its export portfolio.

The upcoming single-seat variant of the FA-50 is on the brink of entering a fiercely competitive arena, where it will face off against India’s LCA Tejas and Pakistan’s JF-17 Thunder. Positioned within a distinct niche, these aircraft cater to countries seeking the capabilities of a full-sized fighter jet without the burdensome acquisition and operational costs typically associated with top-tier models.

This significant budget allocation is earmarked for the development of a single-seat variant of the FA-50, a jet trainer manufactured by Korea Aerospace Industries (KAI). The objective is clear: to tap into new markets, including the highly coveted United States market, according to statements from the Ministry of Trade, Industry, and Energy.

The investment, spread over the course of the project running through 2028, will see the government inject 29 billion won. KAI and its partner firms will contribute the remaining amount required to enhance the performance capabilities of the FA-50s. Key enhancements include equipping the upgraded FA-50 with a domestically developed automatic ground collision avoidance system, along with extending its operational range by up to 30 percent.

South Korea has already made significant strides in exporting the FA-50, having shipped around 140 units of the double-seat version to six countries, including Poland and Malaysia. With this latest investment, the country aims to further solidify its position in the global defense market.

Industrial Policy Director General Lee Seung-ryeol highlighted the FA-50’s unmatched competitiveness in terms of price, performance, delivery time, and operational costs. The development of the single-seat variant is expected to bolster exports, particularly as demand for light trainer combat fighter jets continues to soar internationally.

KAI is gearing up to seize this opportunity, eyeing a substantial share of the estimated 450-unit future market for aircraft in this category. The company aims to secure approximately 50% of this market share, further underscoring its ambitious expansion plans.

Lee emphasized the commitment to establishing a robust defense ecosystem and expanding research and development efforts to facilitate the export of FA-50s to the U.S. market by 2025.