T-50 trainer jet

The T-50 trainer jet (고등훈련기/高等訓鍊機) is a supersonic advanced trainer jet and multirole light fighter, developed by Korea Aerospace Industries (KAI) with Lockheed Martin. The T-50 is Korea's first indigenous supersonic aircraft and one of the world's few supersonic trainers.

Development began in the late 1990s, and its maiden flight occurred in 2002. The aircraft entered active service with the Republic of Korea Air Force (ROKAF) in 2005.

The T-50 has been further developed into aerobatic and combat variants, namely T-50B, TA-50, and FA-50. The F-50 is another advanced fighter variant being considered.
 * T-50B serves with the South Korean air force's aerobatics team.
 * TA-50 light attack variant has been ordered by Indonesia. Additional export orders are being pursued by Iraq, Poland, and Spain. The Philippines has begun contract negotiations to order the FA-50 variant.
 * T-50 is also being marketed as a candidate for the United States Air Force's next-generation T-X trainer programme.

Key words
defense industry, offset trade, acuisition program, supersonic aircraft, trainer jet

FA-50 light attack fighter
South Korea scored a $1.1 billion contract with Iraq on Thursday to sell 24 light attack fighters in the country’s largest aircraft export deal in December 2013. KAI (한국항공우주산업), the country’s sole aircraft maker, is also to strike an additional $1 billion deal soon for logistical support over the next 25 years.

KAI president and CEO Ha Sung-yong and Iraqi Prime Minister Nouri al-Maliki in Baghdad signed the deal for the sale of FA-50 fighters, called the T-50IQ in Iraq because it is based on the T-50 trainer jet, to be delivered from 2016-17. KAI will also train Iraqi pilots.

Korea beat strong competitors from Britain, Russia and the Czech Republic to secure its major bridgehead into the Middle East weapons market. The export contract was worth more than $2 billion in total, the greatest feat in the history of Korea’s aircraft exports.

Iraq is expected to use the FA-50 fleet to maintain its air power and train pilots while waiting for the delivery of 36 F-16 jets from the U.S. Korea also plans to introduce around 60 FA-50s to replace its aging F-5s.

Biggest Defense Deal
This deal seems to offer a crucial opportunity to confirm the competitiveness of Korean aircraft in the world market and the possibility of the industrialization of the country’s aircraft exportation.

Top South Korean officials also attended the signing ceremony in Baghdad. They included Defense Acquisition Program Administration chief Lee Yong-gol, Seoul’s Ambassador to Iraq Kim Hyun-myung and Air Force No. 2 Kim Hyung-chul.

The winning of the contract was the result of combined efforts by the government, military and private sector. KAI first promoted its T-50 series to Iraq when Iraqi President Jalal Talabani visited Korea in February 2009. The company’s full-scale export negotiations began in July 2011 after the Iraqi premier visited the KAI headquarters in Sacheon, South Gyeongsang Province, three months earlier.

In May 2013, President Park Geun-hye sent a handwritten letter to the Iraqi government to help with Korea’s export bid. In July, National Assembly Speaker Kang Chang-hee visited Iraq and was said to have promoted the excellence of the Korean trainer jet.

South Korea has so far signed contracts with Iraq, Indonesia, Turkey and Peru to sell some 120 home-built aircraft, including the T-50 and the KT-1 basic trainer plane. It plans to develop the aviation industry as one of its new growth engines.

Statutory ground
Defense transactions with foreign countries are governed by the Defense Acquisition Program Act (방위사업법), the Enforcement Decree and Rule of the Act, and the Contracting Business Rule for Defense Industries (방위산업에 관한 계약사무 처리규칙)

Of defense transactions, in particular, the offset trade (절충교역/折衷交易, 상계거래/相計去來) means trade where a condition of reciprocal service, such as transfer of relevant knowledge, technology, etc., the overseas export of domestic weapons, equipment, parts, etc. is attached when purchasing weapons, equipment, etc. from abroad. Item 6 of Article 3 of the Act.