Hanwha Group Defense Business Spillover Effect... Airlines' 'Rain in a Drought'

Hanwha Systems Selected as Preferred Negotiator for IFF Performance Upgrade Project

Advance Payments Scheduled for Six Partners Including Korean Air

[Asia Economy Reporter Park Soyeon] As a 'trickle-down effect' of Hanwha Group's defense projects, some funds have been provided to partner airlines. This is a much-needed relief for airlines facing the worst crisis due to the COVID-19 pandemic.

According to industry sources on the 8th, Hanwha Systems plans to pay advance payments totaling 33.3 billion KRW to six defense industry companies including Korean Air on the 13th.

Including previously paid amounts, a total of 88.85616 billion KRW has been disbursed. Hanwha Systems stated, "This project will continue through 2023, and additional financial support in cooperation with airlines is expected."

Recently, Hanwha Systems was selected as the preferred negotiator by the Defense Acquisition Program Administration to upgrade the Identification Friend or Foe (IFF) equipment installed on approximately 540 military aircraft across 17 types to the latest Mode 5 version.

The IFF performance upgrade project involves a total government budget of 600 billion KRW. IFF is equipment installed on aircraft, ships, and air defense weapons to distinguish friend from foe, consisting of transponders, cryptographic devices, interrogators, and control panels. Upgrading to IFF Mode 5 is necessary to respond to advanced operational environments.

The U.S. military is also gradually phasing out the previous Mode 4 version. Accordingly, the Republic of Korea military is promoting a project to replace all IFF equipment with Mode 5.

Hanwha Systems is collaborating not only with overseas companies but also with over 30 domestic partners for the localization, equipment installation, and subsequent maintenance of IFF Mode 5.

Among them, six airlines including Korean Air, as Hanwha Systems' partners, will be responsible for technical and equipment cooperation related to equipment installation and follow-up maintenance.

An industry official said, "This defense project contributes to strengthening our military's operational performance and combat power, and from a win-win perspective, it is an example of sharing business profits with companies recently going through difficult times. I also think that early execution of essential government projects related to aviation can serve as a lever to revitalize the stagnant aviation industry."

This content was produced with the assistance of AI translation services.