Korea Aerospace Industries (KAI) stock breached the 60,000 won mark for the first time in three months. The Malaysian Air Force, which purchased KAI's FA-50 fighter jets, is expected to visit the headquarters in Sacheon, South Gyeongsang Province, where discussions regarding secondary exports may also advance.
KAI shares finished at 62,400 won in the KOSPI market on the 20th. The stock rose 7.03% (4,100 won) from the previous day, marking the first time since Dec. 4 last year that it reached the 60,000 won level. This marked the end of a 49-day period.
KAI's stock opened at 58,300 won that day, dipping to as low as 57,000 won during trading. This was in response to news that the Donald Trump administration might also cut defense spending, shaking the defense industry. However, after 1 p.m., it widened its gains, surging as high as 67,200 won during the trading session.
Tan Sri Mohd Asghar Khan Goriman Khan, Chief of Staff of the Royal Malaysian Air Force (RMAF), along with senior Malaysian military officials, are expected to visit KAI's headquarters in Sacheon this week to examine the production line for the Malaysian export version of the FA-50. This news appears to have stimulated investor sentiment.
In February 2023, Malaysia signed a contract with KAI to purchase 18 FA-50 aircraft for $920 million (approximately 1.3 trillion won). Recent production progress in the mass production phase has reportedly surpassed 50%, advancing more quickly than initially planned.
The visit of the Malaysian Air Force to KAI is expected to facilitate discussions regarding the secondary export of the FA-50. The Malaysian Air Force plans to replace its aging fighter jets in a two-phase project, with the second phase anticipated to commence in 2026.