“The Defense Acquisition Program Administration, the Ministry of Trade, Industry and Energy, KAI-led consortium and Airbus Helicopters agreed to jointly finance the project to develop light armed and light civil helicopters,’’ KAI said in a press release.

As the biggest investor, DAPA will inject 650 billion won for the project, followed by AH with 400 billion won. The Industry Ministry will fund 350 billion won and KAI-led consortium’s contribution will be 200 billion won. 

The South Korean aircraft maker has developed the funding plan since it won the project in March, partnering with Airbus Helicopters. The DAPA developed the project to replace aging 500MD and AH-1S South Korean military choppers.

According to the timeline of the project, KAI will develop LCH and LAH by 2020 and 2022, respectively, based on technical assistance from Airbus’ helicopter business unit.

“After the project is completed, KAI will exclusively produce light civil and armed helicopters for AH and the two partners will jointly market new light choppers in the overseas markets,’’ KAI said. 

“In addition to securing helicopter manufacturing know-how, we expect that the light helicopter project will contribute to the local economy, creating more than 10,000 jobs,” it said.

By Seo Jee-yeon  (jyseo@heraldcorp.com)