Nurturing Aerospace Industry

Korea exported six and four T-50 trainer jets to Iraq and Thailand, respectively, this year.

South Korea's aerospace exports in the first three quarters of 2018 increased 15.8 percent to US$1.8 billion (2.05 trillion won) compared with a year ago, thanks to the sales of the T-50 military trainer jet.

According to the Ministry of Trade, Industry and Energy (MOTIE) on October 25, South Korea’s 38 major aerospace companies exported products worth US$1.84 billion (2.09 trillion won) in the January-September period, while winning new orders totaling US$3.9 billion (4.44 trillion won) during the period.

Exports of complete aircraft showed the highest increase. As six and four T-50 trainer jets were sold to Iraq and Thailand, respectively, aircraft exports surged 186.8 percent to US$380 million (432.44 billion won). Aircraft parts shipments grew 0.1 percent to US$1.46 billion (1.66 trillion won) from the same period of last year.
 

Meanwhile, domestic aerospace companies won US$3.86 billion (4.39 trillion won) of new contracts for the first nine months of this year, up 11.5 percent from a year earlier. They received US$1.33 billion (1.51 trillion won) worth of aircraft rear fuselage parts orders for the Boeing 737 MAX and US$990 million (1.13 trillion won) of engine component orders from General Electric (GE) and Pratt & Whitney.
 

The MOTIE plans to provide more support to help domestic aerospace companies boost exports and win new orders. The government has first added the aerospace parts processing technology development project linked to overseas orders in next year’s budget and allocated 2 billion won (US$1.76 million) for it. In order to improve the small and mid-size companies’ design and manufacturing capacity, it has created an aerospace expert training project and earmarked 1.5 billion won (US$1.32 million) for it. Next year’s budget for aerospace warranty support of the Korea Technology Finance Corporation is set at 15 billion won (US$13.18 million).

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