ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Electronic Technology

Korea Aerospace Industries Ltd.

Company Background

Korea Aerospace Industries is South Korea's sole aircraft maker. It was founded in 1999 under the leadership of the South Korean government, with three conglomerates -- Samsung, Hyundai and Daewoo -- contributing their aerospace expertise. Its leading shareholder is Korea Development Bank, an institution wholly owned by the government.

Korea Aerospace's mainline product is the T-20 supersonic training aircraft, developed jointly with Lockheed Martin, a U.S. defense contractor. Mass production of the jet, which also doubles as a light attack aircraft, began in 2006. In addition to being supplied to the South Korean air force, the T-20 has also been shipped to Indonesia and Iraq.

Korea Aerospace also has a working relationship with Europe's Airbus Group. With the help of Airbus, the company in 2012 began selling the first South Korean-built helicopters.

In 2015, the company was awarded a contract to build the KF-X fighter, to be developed jointly with Indonesia, which is an investor in the 18 trillion won ($15.7 billion) project. Plans call for building 120 of the planes between 2025 and 2032. Korea Aerospace will have to pay a penalty if it falls behind schedule.

Opposition from Washington meant the company was unable to obtain the radar technology it wanted from Lockheed Martin, so it is developing the technology in-house. Some observers say that could impact the development schedule.

Business Summary

Korea Aerospace Industries Ltd. engages in the manufacture and sale of aircrafts. Its products include fixed wing, rotary wing, air frame, upgrade, modification, training system development, space program, and UAV. The company was founded on October 1, 1999 and is headquartered in Sacheon, South Korea.

Financial Highlights

Dec 2019 KRWUSD
Revenue3,110.15B2,666.95M
Gross Profit645,083.66M553.15M
Operating income275,564.42M236.29M
Income before tax129,397.29M110.95M
Net income170,402.86M146.12M
EBITDA392,052.70M336.18M
Diluted EPS1,748.161.49
Dividends Per Share4000.34
Total Assets4,367.13B3,776.32M
Total liabilities3,183.97B2,753.23M
Total equity1,141.85B987.38M
Operating cash flow354,538.67M304.01M
Currency in KRWCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 2,901.03B 2,946.33B 2,072.24B 2,786.02B 3,110.15B
Gross Profit 525,881.75M 588,986.12M 127,394.23M 524,572.45M 645,083.66M
Operating income 285,655.29M 320,092.40M -208,873.25M 145,363.63M 275,564.42M
Income before tax 239,238.51M 317,133.75M -320,282.33M 79,660.49M 129,397.29M
Net income 180,565.55M 264,801.08M -235,185.85M 57,188.11M 170,402.86M
EBITDA 380,579.54M 424,399.78M -125,229.83M 237,906.20M 392,052.70M
Diluted EPS 1,852 2,717 -2,413 587 1,748.16
Dividends Per Share 400 680 0 200 400
Total Assets 2,726.11B 2,992.14B 3,199.73B 3,755.86B 4,367.13B
Total liabilities 1,554.25B 1,546.57B 2,059.32B 2,702.95B 3,183.97B
Total equity 1,171.85B 1,445.57B 1,140.40B 1,009.42B 1,141.85B
Operating cash flow 59,851.87M 145,284.89M 104,641.67M 137,643.71M 354,538.67M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 2,563.19M 2,539.52M 1,833.02M 2,531.55M 2,666.95M
Gross Profit 464.64M 507.66M 112.68M 476.65M 553.15M
Operating income 252.38M 275.89M -184.76M 132.08M 236.29M
Income before tax 211.37M 273.34M -283.30M 72.38M 110.95M
Net income 159.53M 228.23M -208.03M 51.96M 146.12M
EBITDA 336.25M 365.80M -110.77M 216.17M 336.18M
Diluted EPS 1.63 2.34 -2.13 0.53 1.49
Dividends Per Share 0.35 0.58 0 0.18 0.34
Total Assets 2,324.94M 2,477.35M 2,988.86M 3,366.07M 3,776.32M
Total liabilities 1,325.53M 1,280.48M 1,923.61M 2,422.43M 2,753.23M
Total equity 999.40M 1,196.86M 1,065.25M 904.66M 987.38M
Operating cash flow 52.88M 125.22M 92.56M 125.07M 304.01M

Valuation Measures

Dec 2019
PER19.47
ROA4.19%
ROE15.84%
Operating margin8.86%
Profit margin5.47%

Key executives

  • Chief Executive Officer: Hyun-Ho Ahn
  • Senior Managing Director & Head-Operations: Hyun-Dae Shin
  • Senior Managing Director: Sang-Youl Choi
  • Managing Director & Head-Human Resources: Myung-Hwan Lee

Shareholders

  • Government of South Korea (26.4%)
  • National Pension Service of Korea (7.1%)
  • Hana Financial Investment Co., Ltd. (Private Equity) (4.8%)
  • The Vanguard Group, Inc. (2.0%)
  • BlackRock Fund Advisors (1.7%)
  • Korea Aerospace Industries Ltd. ESOA (1.5%)
  • Samsung Asset Management Co., Ltd. (0.7%)
  • TOBAM SAS (0.5%)
  • BlackRock Advisors (UK) Ltd. (0.4%)
  • APG Asset Management NV (0.3%)

Contact Details

  • Website:http://www.koreaaero.com
  • Address: 78 Gongdan 1-ro, Sanam-myeon, Sacheon, 52529, South Korea
  • Phone: +82.55.851.1000

Related Companies

  • Taas Co. Ltd.
  • Korea Aerospace Industries Co.
  • Korea Aerospace Industries Ltd. ESOA
  • Korean Air Lines Co. Ltd. /Aerospace Division/

Competitors

  • Boeing Company
  • Airbus SE
  • Lockheed Martin Corporation
  • Textron Inc.
  • Embraer S.A.
  • Leonardo SpA
  • Irkut Corp.
  • Bombardier Inc. Class B
  • LIG Nex1 Co., Ltd.
  • Jiangxi Hongdu Aviation Industry Co., Ltd. Class A
  • Firstec Co., Ltd
  • AeroSpace Technology of Korea, Inc.
Last Updated on 13 Aug, 2020

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media