Seoul: South Korea plans to sign a deal to export 16 KF-21 fighter jets to Indonesia, government sources said Thursday, marking the first overseas sale of South Korea's indigenous fighter jet. The agreement is expected to be finalized during Indonesian President Prabowo Subianto's state visit to South Korea, scheduled from March 31 to April 2.

According to Yonhap News Agency, the final contract for the export deal will be concluded in the first half of the year following pricing negotiations. This development signifies a significant milestone as it would be the first overseas export of the homegrown fighter jets. The KF-21 development program was launched in 2015 by South Korea to replace its Air Force's aging fleet of U.S.-made F-4 and F-5 jets.

Initially, Indonesia had agreed to contribute about 20 percent of the project's cost as a partner country through June 2026. This partnership was in exchange for technology transfers and other conditions from Seoul. However, Indonesia failed to meet payment deadlines and proposed lowering its contribution in exchange for reduced technology transfers. A probe was conducted into alleged technology theft by Indonesian engineers at Korea Aerospace Industries Ltd., the manufacturer of the KF-21.

Last year, the two countries agreed to reduce Jakarta's contribution to the joint jet project to 600 billion won (US$400 million), which is about one-third of the original amount. The KF-21 fighter jet completed its flight tests in January without any incidents. The state arms procurement agency aims to finish the development of the fighter jet by the first half of this year and deliver the first batch to the Air Force in the second half.