Korea Aerospace Industries Amends KF-X Development Contract, Adjusts Indonesia's Contribution to 600 Billion Won, Final Amount to Be Settled Later

Korea Aerospace Industries has entered into an amendment to its KF-X system development contract with DAPA. The amendment reduces Indonesia's contribution to 600 billion won, with the shortfall covered by the Korean government and domestic companies.
The contract value is approximately 7.921 trillion won, representing 342.2% of 2014 consolidated revenue. The contract runs until June 30, 2026, and being a general estimate contract, the final amount will be determined after cost settlement.
This contract is a key national defense project to replace aging South Korean fighter jets, providing stable revenue. No new share issuance or capital change is involved.
[AI Summary]The amendment of KAI's KF-X contract secures continuation of a massive national project and enhances long-term revenue stability. The reduction in Indonesia's share adjusts financial burden but risks are managed through government support. No direct dilution to shareholder value.