Defense & Military
KAI Wins $64.5M Contract to Upgrade Philippine FA-50PH Jets
Korea Aerospace Industries secures $64.5 million contract to modernize 11 Philippine FA-50PH aircraft focusing on radar, range, and weapons systems.
This article summarizes reporting by the Philippine News Agency and additional context from industry reports.
Korea Aerospace Industries (KAI) has finalized a significant agreement with the Philippine Department of National Defense (DND) to upgrade the avionics and operational capabilities of the Philippine Air Force’s (PAF) existing fighter jet fleet. Signed on December 26, 2025, the contract is valued at 93 billion won (approximately USD 64.5 million) and covers the modernization of 11 FA-50PH light combat military-aircraft.
According to reporting by the Philippine News Agency (PNA), the upgrade program is scheduled to run through 2029. The initiative aims to bridge the capability gap between the PAF’s current assets and the more advanced platforms it is currently acquiring, ensuring the fleet remains viable for external defense missions.
This deal represents a critical step in the “Horizon 3” phase of the Armed Forces of the Philippines (AFP) Modernization Program, which prioritizes territorial defense and interoperability with allied forces.
The modernization package focuses on three primary areas: radar performance, operational range, and weapons integration. Industry reports indicate that the upgrades are designed to transform the FA-50PH from a lead-in fighter trainer with light attack capabilities into a more potent multi-role combat aircraft.
A central component of the upgrade is the improvement of the aircraft’s radar and communication systems. KAI aims to install “network-based interoperability” features, likely referring to Link 16 data link capabilities. This technology allows the FA-50PH to share real-time tactical data with other AFP assets, such as modern frigates and ground-based radar-systems, as well as with allied nations during joint patrols.
To address the logistical challenges of patrolling the vast Exclusive Economic Zone (EEZ), the upgrade includes provisions for extended operational range. Reports suggest this will be achieved through the integration of larger 300-gallon external fuel tanks. Furthermore, the aircraft will be adapted to carry enhanced precision-guided munitions, potentially including the AIM-9X Sidewinder and GPS-guided bombs, improving their lethality in both air-to-air and air-to-ground roles.
“This contracts is an opportunity to once again confirm the trust and cooperative relationship between the Philippine Air Force and KAI.”
, Cha Jae-byung, CEO of Korea Aerospace Industries (via Yonhap News Agency)
The Philippines originally acquired 12 FA-50PH jets between 2015 and 2017 under the “Horizon 1” modernization phase. However, the current contract covers only 11 aircraft following a hull loss earlier this year.
On March 4, 2025, one FA-50PH was lost in an accident in Bukidnon during a night combat support mission. The crash resulted in the fatalities of both the pilot and co-pilot. Investigations cited by defense reports attributed the incident to environmental factors and the risks associated with night operations in complex terrain, rather than mechanical failure. Following a review of safety protocols, the remaining fleet returned to active service.
It is important to distinguish this upgrade program from a separate, larger acquisition deal signed earlier in the year. In June 2025, the DND signed a contract worth approximately USD 700 million for the purchase of 12 brand-new FA-50 “Block 20” aircraft.
Unlike the existing fleet being upgraded, the incoming Block 20 jets, slated for delivery by 2030, will feature factory-standard advanced capabilities, including:
The decision to upgrade the legacy fleet rather than retire it demonstrates a pragmatic approach to modernization by the Philippine defense establishment. At a cost of roughly $5.8 million per airframe, the DND is extending the service life of its assets while ensuring they can operate alongside the incoming Block 20s. Without these upgrades, the older FA-50PHs would lack the data-link connectivity required for modern “cooperative engagement” tactics, effectively rendering them obsolete in a high-intensity conflict scenario in the South China Sea.
By 2030, the PAF is projected to operate a mixed fleet of 23 FA-50s (11 upgraded legacy models and 12 Block 20s). This mix provides a “high-low” capability within the light fighter category, allowing the more advanced Block 20s to handle complex air-to-air tasks while the upgraded legacy jets conduct maritime patrols and ground support.
Sources: Philippine News Agency, Yonhap News Agency, FlightGlobal
KAI Secures $64.5 Million Contract to Modernize Philippine FA-50PH Fleet
Scope of the Upgrade Program
Enhanced Avionics and Connectivity
Range and Weaponry
Fleet Status and Recent History
Distinction from New Acquisitions
AirPro News Analysis
Sources
Photo Credit: KAI