Currently, South Korea’s Hanwha Aerospace produces engines for the KF-21 under license from U.S. manufacturer GE Aerospace. However, Washington’s export restrictions—imposed on the grounds of national security—have frustrated South Korea’s ambitions to export the aircraft to countries such as the United Arab Emirates and Indonesia. These limitations have prompted Seoul to explore alternative engine development options to reduce its reliance on U.S. suppliers.
South Korea is now considering the development of a next-generation engine for the KF-21, scheduled to enter production in the mid-2030s. Domestic companies Hanwha Aerospace and Doosan Enerbility are both vying for roles in this program. However, British officials argue that partnering with a foreign engine manufacturer such as Rolls-Royce could serve as a pragmatic intermediary step, allowing for technology transfer and risk mitigation.
“Rolls-Royce’s involvement would de-risk the project and accelerate the timeline,” a UK official told the Financial Times. “This is not about simply selling engines to South Korea. It is about developing a new engine together and seeing that relationship through to the end of the engine’s life.” Although Rolls-Royce declined to comment directly, sources familiar with the matter confirmed the company’s strong interest in supporting international indigenous engine development programs, including similar ambitions in India.British lobbying efforts are also being framed within a larger push to build long-term industrial partnerships with South Korea, one of the world’s top ten arms exporters. The UK government’s recent Strategic Defence Review emphasized the need for sustainable and scalable munitions production, reflecting increased defense spending across Europe in response to Russia’s war in Ukraine and shifting U.S. priorities.
Rolls-Royce already supplies gas turbine engines for South Korean naval vessels. Other UK and European companies are involved in the KF-21 platform: Uxbridge-based Martin-Baker supplies the ejection seat, and European missile house MBDA—jointly owned by BAE Systems, Airbus, and Leonardo—provides the aircraft’s missile system.
Meanwhile, Hanwha has reportedly discussed establishing munitions factories in the UK through a potential partnership with BAE Systems. This would support European efforts to expand weapons production capacity amid growing concerns over U.S. strategic consistency in European security affairs.
However, analysts cited by the Financial Times warn that the UK’s efforts may face headwinds due to South Korea’s longstanding security alliance with the United States. Hanwha is currently pursuing contracts with the U.S. Navy for shipbuilding, as well as engine maintenance and repair agreements for American aircraft stationed across Asia. A source close to the company noted that South Korea’s defense procurement decisions are also influenced by efforts to balance its large trade surplus with the United States—amounting to $55 billion—with strategic purchases. GE Aerospace, for its part, has expressed its intention to remain involved in the KF-21 program. While declining to comment on future contracts, a GE spokesperson told the Financial Times that the company remains committed to South Korea’s defense industry, emphasizing a six-decade relationship with the country.South Korea’s defense procurement agency confirmed that no final decision has been made regarding future engine co-development or foreign partnerships. Both BAE Systems and Hanwha declined to comment on the ongoing discussions.