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since 2009
Tuesday, August 25, 2026

Embraer partners with South Korean aerospace industry to position the KC-390 in the Asian country

By · October 30, 2022 · 3 min read

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Embraer has signed several memorandums of understanding with South Korean aerospace companies ASTG (Aerospace Technology of Global), EMK (EM Korea Co.), and Kencoa Aerospace to strengthen the partnership with the local defense industry for the future supply of parts for the KC-390 Millennium.

The Brazilian aircraft competes in the Large Transport Aircraft II (LTA II) program of the Defense Acquisition Program Administration (DAPA) of South Korea to select the future transport aircraft of the Asian country.

The possible supply of South Korean-made parts will contribute to the offset requirements of the LTA II program.

KC-390 de Embraer. Foto: Embraer
KC-390 Embraer. Foto: Embraer
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However, the memoranda are intended to create long-term business relationships between the parties that will extend beyond the program for the new South Korean transport aircraft.

The Korean industry’s capabilities may also lead it to participate in future developments of Embraer’s existing platforms and new aircraft, vehicle, and systems projects.

“Embraer is very confident in the mutual benefits to be gained from this partnership, thus creating a long-term, sustainable relationship with South Korean partners,” said to Infodefensa Jackson Schneider, president, and CEO of Embraer Defense & Security.

The KC-390's cargo compartment can accommodate a weight of up to 26 tons. Photo: Embraer
The KC-390’s cargo compartment can accommodate a weight of up to 26 tons. Photo: Embraer

“Offering more than 50 years of aviation, technology, and innovation expertise, we look forward to establishing meaningful partnerships in Korea to create new businesses and solutions,” he added.

NEW KOREAN TRANSPORT AIRCRAFT

The Republic of Korea Air Force (Rokaf) plans to induct new transport and cargo aircraft by 2026. In March 2022, the Defense Project Promotion Committee approved a budget of about US$580 million for their procurement on the international market.

KAI's proposed design incorporates hardpoints (hangers) to accommodate different types of guided munitions. Image: KAI
KAI’s proposed design incorporates hardpoints (hangers) to accommodate different types of guided munitions. Image: KAI

As competitors in this tender, the most valued are the A400M of the European aircraft manufacturer Airbus, the KC-390 of the Brazilian Embraer, and the C130J of the U.S. defense company Lockheed Martin.

The competitors above will have to provide significant technology transfers to assist in developing the future national transport aircraft proposed by Korean Aircraft Industries (KAI).

This South Korean aerospace company has submitted a project to develop its multi-role, twin-engine, medium-weight military transport aircraft, essentially a South Korean version of the KC-390 itself, but with some crucial differences, as the South Koreans wish to get much more performance out of their future freighters.

Photo: KAI
Photo: KAI

KAI’s proposed design has a configuration in which its wings incorporate hardpoints to accommodate different types of guided munitions.

Translating, the South Korean aircraft can take on offensive profiles using the long range.

KAI’s project should not be limited to military transport or tanker aircraft tasks.

Still, it should assume other roles, being used as a maritime exploration and anti-submarine warfare platform, intelligence aircraft, and even as a mother ship for launching drones (loyal wingmen) and long-range ground attack missiles (cruise missiles).

With information from Infodefensa

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Embraer
NYSE: ERJEMBJ3IndustrialsAerospace & Defense20,923 employees
$12.33B
Market cap
Analyst target $68.50

Wall Street view

3.9Moderate Buy/ 5
10 Buy3 Hold1 Sell
Avg. price target $68.50  ·  +30% vs 200-day

Valuation & profitability

Market cap$12.33B
Revenue (TTM)$39.80B
P / E ratio37.7
Profit margin5.4%
Return on equity11.3%

Price & risk

52-wk low
$54.82
52-wk high
$66.87
Beta (volatility)0.92
200-day average$52.79

Revenue trend · 6y

20192024
Latest $6.39B

Ownership

Institutions46.0%
Shares outstanding183M
Top holderGQG Partners LLC
Institutional holders5+ funds

Dividend

Yield0.1%
Payout ratio31.0%
Fwd. annual$0.05
What Embraer does. Embraer S.A., together with its subsidiaries, designs, develops, manufactures, and sells aircraft and systems worldwide. It operates through Commercial Aviation; Defense & Security; Executive Aviation; Services & Support; and Other segments. The Commercial Aviation segment develops, produces, and sells commercial jets. Its Defense & Security segment develops and produces military aircraft and…
Data: RT fundamentals (ERJ.US) · figures in USD · as of 25 Aug 2026More company intelligence →

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