[Teheran-ro] The 'Political Frame' Holding Back KAI

"The special prosecutor is reportedly targeting Korea Aerospace Industries (KAI). They haven't entered the headquarters yet, but are said to be starting with the unmanned aerial vehicle business team."
On July 15, I received a tip containing specific details. The informant further explained that the special prosecutor appeared to be focusing on former President Yoon Suk Yeol and former Defense Minister Kim Yong-hyun.
In the end, it turned out to be a false alarm. The special prosecutor never came. Even after checking again a month later, it remained nothing more than a rumor.
However, KAI’s ordeal did not end there. Starting early this year with the Sikorsky UH-60/HH-60 Black Hawk helicopter (Black Hawk) upgrade project (961.3 billion won), KAI lost three consecutive bids, including the electronic warfare system development project (1.7775 trillion won) and the Navy target drone R&D project.
These failed bids and the search-and-seizure incident starkly illustrate KAI’s current situation. Some within the KAI union and industry circles pointed to the vacant CEO position as the cause. Given that CEOs typically lead the charge in the defense industry, this is not an unreasonable claim.
However, it is difficult to attribute KAI’s crisis solely to the absence of a CEO, as the timing of the failed bids does not align. Kang Goo-young, the former KAI CEO, resigned early in July. However, Korean Air had already been selected as the preferred bidder for the Black Hawk upgrade project in May.
An internal KAI source commented, "While the CEO vacancy may have had some impact, the bigger issue is the 'previous administration’s favoritism' frame. Whenever a parachute appointment is made at the start of a new administration, employees always suffer through humiliation."
In fact, KAI was raided three times on July 14, 18, and 26, 2017. The raids targeted not only the Sacheon headquarters and the Seoul office but also partner companies. The rumors of a raid resurfaced again this July.
The KAI union is rejecting the current administration’s parachute CEO and is demanding a professional manager. Some employees, mentioning specific companies such as HD Hyundai and Hanwha Group, lament, "It would be better if we were sold off."
KAI has pioneered overseas exports of Korean fighter jets. The company is also leading the NewSpace era by producing space launch vehicles and satellites. As a highly specialized field, professional engineers are KAI’s core assets.
The real problem is the baseless frame war. Even professional engineers are getting caught up in a mold that even politicians struggle to break. The K-defense industry is still an emerging powerhouse. We must not make the mistake of undermining the bigger picture by getting trapped in a narrow frame war.
hoya0222@fnnews.com Reporter