Discussion of pending defence contracts dominated as South Korea staged its first international air show at Seoul's Sungnam airbase on 21-27 October. Paul Lewis reports.

THE SOUTH KOREAN Government has again delayed any decision on launching full-scale development of the planned Samsung/Lockheed Martin KTX-2 advanced-trainer/ light-combat aircraft for at least another six months.

A lack of agreement on funding for the $1.5 billion programme has forced the defence ministry to postpone the start of development until the second half of 1997, at the earliest. The Government is instead seeking interim financing to further extend the preliminary design phase.

South Korean industry officials are warning that with a presidential election due in late 1997, the KTX-2 project is again likely to put on the political back burner. "It could easily slide into 1998," confirms Lockheed Martin Tactical Aircraft Systems president Dain Hancock.

South Korea's Economic Planning Board has yet to be convinced the programme is financially viable and is arguing the money would be better spent on major infrastructure improvements. Seoul is also asking the US Government for a memorandum, guaranteeing technology-transfer and export sales.

US defence undersecretary Paul Kaminski wrote to South Korea in September, in an effort to overcome local concerns. The letter agrees to the transfer of "F-16-level technology," and offers to consider sales to selected third countries on a case-by-case basis, rather than giving a carte blanche commitment.

KTX-2 is already 12 months behind schedule because of earlier delays in finding a co-development partner. Following the signature of a provisional teaming agreement between Lockheed Martin and prime contractor Samsung in July, it had been hoped to begin work in early 1997 and deliver the first production aircraft in 2005.

Under the deal, Lockheed Martin will invest in the programme and manufacture some components. Its actual work share, the size of its investment and planned payback period has to still be finalised. "It's nominally about 20%," says Hancock, but adds that it is "not a nailed down figure."

Preliminary design work already completed by Samsung and Lockheed Martin is based around the aircraft being powered by a single General Electric F404 engine. According to Lockheed Martin vice-president George Sangis, South Korea is also looking seriously at the Snecma M88-2K turbofan as a contender to power the KTX-2.

South Korea, in the meantime, has still not finalised arrangements with the US Air Force to lease 30 Northrop T-38 trainers, despite having already signed a letter of offer and acceptance. They are intended as a gap filler until the first KTX-2 is delivered, but last-minute concerns about the cost of refurbishing the mothballed trainers is holding up the deal.

The aircraft are urgently needed to supplement the air force's 17 British Aerospace Hawk Mk67 trainers. The Hawks are being heavily used and sources suggest the air force is considering a top-up purchase to boost its fleet to 25.

Source: Flight International