Korea Airports Corporation Partners on Saudi Naval Project...Expects 8 Billion Won in Exports

MOU Signed with HD Hyundai Heavy Industries and Saudi Ministry of Investment for Naval Vessel Construction
Independently Developed Tactical Air Navigation System Onboard... Bridgehead for Entry into the Middle Eastern Defense Market

Korea Airports Corporation announced on the 10th that it signed a memorandum of understanding (MOU) in Riyadh, Saudi Arabia, at the World Defense Show (WDS) 2026 with HD Hyundai Heavy Industries and the Saudi Ministry of Investment to cooperate on the construction of naval vessels for the Royal Saudi Navy. WDS is the largest integrated defense exhibition in the Middle East, held biennially in Saudi Arabia.

This agreement was prepared to establish a Korean-style maritime defense cooperation model that combines Korea's shipbuilding technology with its navigation safety technology, in line with the Saudi government's ongoing naval force modernization program.

Under the MOU, HD Hyundai Heavy Industries will build naval vessels by applying the Tactical Air Navigation (TACAN) system for warships independently developed by Korea Airports Corporation, while the Saudi Ministry of Investment will support the promotion of local projects and investment cooperation, including consultations and coordination with related organizations. If the consortium wins the Saudi naval vessel project, Korea Airports Corporation will achieve the first overseas export of its domestically developed TACAN. According to the corporation, the supply of five units is expected to generate export effects of approximately 8 billion won.

The TACAN system for warships is a core piece of equipment that provides bearing and distance information required for military aircraft to return to their vessels during maritime operations. Korea Airports Corporation succeeded in localizing the system in 2021 after three years of research and development and has been recognized for its technological prowess by winning projects from the Defense Acquisition Program Administration. Through this agreement, the corporation plans to secure a bridgehead for entering the Middle Eastern market and to expand its overseas presence through cooperation with global shipbuilders.

Heo Joohee, Head of the Glocal Business Division at Korea Airports Corporation, said, "This agreement is meaningful in that it has laid the foundation for entering the Saudi and broader Middle Eastern defense markets, with a focus on the corporation's navigation safety technology."

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