Korean Air's space and defense business is on the verge of turning a profit for the first time in six years. Defense once accounted for up to 8% of Korean Air's revenue and 13.5% of its operating profit, but it fell into a slump due to the COVID-19 pandemic and posted losses for five consecutive years from 2020 through last year. This year, it posted back-to-back profits in the first and second quarters, signaling a comeback. Hanjin Group Chair Cho Won-tae plans to make defense a future growth engine for Korean Air.
Korean Air set up a 1,000㎥ (about 303 pyeong) booth at the Seoul International Aerospace and Defense Exhibition (ADEX) 2025, which opened on the 20th. It is the largest among participating aviation corporations. Korean Air prominently showcased its newly created integrated brand CI (Corporate Identity) throughout the booth.
At this event, Korean Air unveiled three types of unmanned aerial vehicles: ▲ a prototype of the low-observable unmanned teaming aircraft (LOWUS) ▲ a prototype of a medium strike unmanned aircraft (loitering munition) ▲ a mock-up (full-scale model) of the small cooperative unmanned aircraft (KUS-FX). The low-observable unmanned teaming aircraft is an unmanned platform that forms a composite formation with a manned fighter to conduct reconnaissance, electronic warfare, and attack missions. The prototype has been completed and is about to begin test flights.
The unveiled unmanned aircraft is known as the key platform of a "manned-unmanned teaming system," which carries out missions in multiple formations with manned fighters. It is a next-generation capability that major defense countries, including the United States, are racing to develop. Korean Air is working with the U.S. AI defense company Anduril to enable the unmanned aircraft to make decisions and carry out missions on its own.
Korean Air has carried out development, maintenance, and performance upgrade programs for military aircraft systems for more than 50 years. Korean Air is also set to join as a domestic partner in the Air Force's airborne control aircraft program awarded to U.S. defense firm L3Harris. After purchasing four Global 6500 jets from aircraft manufacturer Bombardier, Korean Air will work with L3Harris on modifications, including equipment integration.
An airborne control aircraft is an asset equipped with a high-performance radar and is called a "flying radar and command post." It detects and analyzes targets across the country and directs and controls operations in real time from the air.
In April, Korean Air was selected as the preferred bidder for an 830 billion won UH-60 helicopter performance upgrade program. The company also has a high chance of winning a 1.8 trillion won electronic warfare aircraft program in a consortium with LIG Nex1.
Korean Air is also active in the maintenance, repair, and overhaul (MRO) business. The company has maintained U.S. military rotary-wing aircraft (helicopters) such as the HH-60 (Black Hawk) and CH-53 (heavy transport helicopter). Including fixed-wing aircraft (fighter jets) such as the F-4, F-15, F-16, A-10, and C-130, Korean Air has handled MRO for about 3,700 U.S. military aircraft in the Pacific region, and a cumulative total of more than 5,500 when including Korea's military aircraft.
Korean Air's defense business results are on the rise. In the first quarter, Korean Air posted 3.3 billion won in operating profit in the aerospace sector. It recorded 1.7 billion won in operating profit in the second quarter as well, pointing to a full-year profit. A Korean Air official said, "Korean Air is the only one among global commercial airlines to pursue aerospace, defense, and military aircraft MRO businesses," adding, "We plan to strengthen the ecosystem of the global defense industry, leveraging the know-how and network accumulated through our military aircraft MRO business."