Korea Aerospace Industries Ltd. (KAI) Chief Executive Officer Kang Goo-young tendered his resignation on Wednesday, coinciding with the first day of South Korea’s new administration.

According to a KAI official, Kang expressed his intention to resign during a visit to the Export-Import Bank of Korea, the company’s largest shareholder with a 26.41 percent stake.

He reportedly stated that he would step down once a successor is appointed, regardless of his remaining term.

Kang was appointed in September 2022 and would have completed his three-year tenure in September this year.

A former Air Force pilot and retired lieutenant general, Kang previously served as operations chair of a group that supported former President Yoon Suk Yeol during the last presidential election, before being appointed to lead KAI.

In April, Kang faced multiple allegations, including defamation, obstruction of business, incitement to perjury, and breach of duty. In a complaint filed against Kang, Democratic Party lawmaker Park Sun-won argued that Kang harmed the company’s competitiveness by filing false accusations against current and former executives and by mishandling advance payments tied to exports to Poland. Park also criticized the appointment as politically driven and detrimental to corporate governance.

CEO appointments at KAI have traditionally reflected political considerations, but calls are growing for leadership grounded in management expertise and operational stability, given KAI’s role as Korea’s sole manned aircraft manufacturer and a leading defense contractor.

“With global competition in the aerospace sector intensifying, the practice of appointing CEOs based on political affiliations should be phased out,” said one industry official.

On the same day, KAI also announced its new export contract with the Philippine Department of National Defense.

The deal, concluded Tuesday, calls for the delivery of 12 FA-50PH light combat aircraft by 2030, with a total value of approximately $700 million, including follow-on logistics support.

KAI first exported the FA-50PH to the Philippines in 2014. The aircraft was deployed in the 2017 Battle of Marawi between government forces and armed militants, and participated in last August’s Exercise Pitch Black, a multinational air combat drill held at Australia’s Darwin Base. According to KAI, the aircraft’s performance drew attention for its maneuverability. The latest batch to be delivered will include aerial refueling capability, extending its operational range.

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