Gov't unveils ambitions for aeronautics industry

SEOUL, Jan. 21 (Yonhap) -- The government announced a set of plans Thursday to
turn South Korea into a global leader in the aeronautics industry by 2020,
including the development of a commercial airliner and helicopter.
The Knowledge Economy Ministry's proposal aims to drive up annual output in the
sector to US$20 billion -- far above 1.9 billion in 2008 -- to land it among the
top seven countries in the aeronautics industry. South Korea currently stands at
about 15th.
The ministry also said the country should strive to export $10 billion worth of
airplanes and related parts in the next decade.
"Aeronautics represents the pinnacle of the so-called 'systems industry,' and
requires extensive and wide-ranging infrastructure and knowhow" to become a
leader in the sector, Vice Minister Rim Che-min said in a press conference.
Rim added that South Korea's prowess in electronics, information technology,
engineering and machinery has created an environment for it make inroads into the
global aeronautics market.
It wasn't clear how much funding the government plans to provide for the plan.
"Exact details on government investment plans will require more time to set," the
vice minister said, "but funds will be made available in 2011 and 2012 for
exploratory development of the long-delayed Korea next generation fighter (KFX)
project, the attack helicopter program and a regional passenger aircraft capable
of seating 100 people."
The government will also set money aside for a civilian helicopter based on the
"Surion" military chopper unveiled last year, he said.
The plan was finalized at an aerospace industry development committee chaired by
Knowledge Economy Minister Choi Kyung-hwan. It also pushes to transform the
existing airplane maintenance, repair and overhaul (MRO) business into an export
industry, enhance the efficiency of research and development and boost related
infrastructure.
Civilian companies will be asked to play a leading role in the development and
production of basic military training aircraft, unmanned aerial vehicles, small
helicopters and light utility airplanes.
The government will focus R&D spending on large projects such as the KFX,
passenger jets and very high-altitude unmanned planes similar to the U.S.-made
Global Hawk, according to the ministry.
To attract foreign risk-sharing partners and cope with the typically long
return-on-investment period for aeronautics projects, the government may
introduce special purchase order bonds and set up a lease company that can lend
locally-made aircraft to operators, the ministry said.
yonngong@yna.co.kr
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