Hanwha, KAI sign MOU to jointly develop long-range air-to-air missile

Hanwha Aerospace announced Wednesday that it has signed a memorandum of understanding with Korea Aerospace Industries (KAI) to jointly develop a long-range air-to-air missile system.

Under the MOU, the two companies will work together on developing the missile to support the stable development of domestically produced air armaments and the integration and operational deployment of the KF-21 fighter jet.

The two companies had previously signed a cooperation agreement in February pledging to jointly market domestically developed aircraft internationally and share supplier supply chains to strengthen the global competitiveness of South Korea's defense industry. That same month, they also signed an MOU on air armament business cooperation at the World Defense Show in Riyadh, Saudi Arabia.

Hanwha and KAI have been closely cooperating on the development and production of domestic aircraft. For the KF-21 — South Korea's first homegrown fighter jet, whose system development concluded in June — Hanwha supplies aircraft engines, landing gear, flight control systems and active electronically scanned array (AESA) radar.

"As the leading domestic developer and producer of solid-propellant guided missiles, we will make company-wide efforts to successfully localize the long-range air-to-air missile, which is directly tied to the core competitiveness of our homegrown fighter jet," a Hanwha Aerospace official said. "We will also contribute to strengthening the competitiveness of domestically produced air armaments through continued cooperation between the companies."

Meanwhile, Hanwha has become KAI's second-largest shareholder after acquiring a 15.89% stake. The Korea Fair Trade Commission approved last month the acquisition of KAI shares by Hanwha Aerospace and two other Hanwha affiliates.