Korea Aerospace Industries Signs US$700 Million Contract to Supply 12 FA-50 Light Attack Aircraft to the Philippines

Summary: Korea Aerospace Industries Ltd. (KAI) has signed a US$700 million contract with the Philippine defense ministry to export 12 FA-50 light attack fighters by 2030, the state arms procurement agency of South Korea confirmed. The deal is the second round of FA-50 exports to Manila and extends a decade-long defense trade relationship worth around US$3 billion.

The contract

The US$700 million deal was signed on Tuesday, June 3, 2025, and announced by the Defense Acquisition Program Administration (DAPA) on Wednesday. It provides for the delivery of 12 additional FA-50 light attack fighters to the Philippines by 2030. The contract marks the second round of FA-50 exports to Manila, following an initial deal signed in 2014 to supply 12 jets.

How the deal was prepared

South Korea and Manila have been in talks over the FA-50 package for months. DAPA Minister Seok Jong-gun (Seok Jong-gun) and Philippine Defense Secretary Gilberto Teodoro (Gilberto Teodoro) discussed arms industry cooperation during their meeting in Manila in March 2025, setting the ground for the June signing.

A decade of defense trade

The Philippines has introduced various South Korean-made weapons systems over the past decade, including FA-50 light attack aircraft, frigates and corvettes worth around US$3 billion, emerging as Seoul's biggest arms trade partner in Southeast Asia. DAPA said the new contract is expected to contribute to expanding bilateral military exchanges and to stabilizing security in Southeast Asia.

FA-50 export footprint

The FA-50 has been exported to six countries, including Indonesia, Iraq, Malaysia, Poland and Thailand.
Prior to the Philippine deal, South Korea last inked a contract to supply 18 jets to Malaysia in 2023.
The 2014 Philippine contract supplied the first 12 FA-50 aircraft of the current fleet.

What the contract changes for both sides

For KAI, the June 2025 contract converts a decade-long customer relationship into a production pipeline that runs to 2030: the 12 additional aircraft double the Philippine FA-50 fleet acquired under the 2014 contract, and schedule the company's export slots alongside commitments to the other five operator countries. For Manila, the package closes a capability gap with a platform already supported locally through a decade of operation, training and logistics built around the first 12 jets. DAPA's framing ties the commercial contract to a wider objective: expanding bilateral military exchanges and stabilizing security in Southeast Asia, a region where the Philippines has become Seoul's biggest arms trade partner.

Contact

Korea Aerospace Industries Ltd. (KAI), Sacheon, South Korea. Media and investor relations enquiries are handled through the corporate website https://www.koreaaero.com.