SEOUL, July 15 (Xinhua) -- South Korea and Indonesia on Thursday agreed to join hands in developing fighter jets.
Indonesia will shoulder 20 percent of the development costs in the multi-million dollar KF-X program and purchase about 50 fighter jets when mass production begins, South Korea's Defense Acquisition Program Administration (DAPA) said.
The two sides will also cooperate in production and marketing.
South Korean President Lee Myung-bak signed a letter of intent for the joint development project when he visited Indonesia in March last year, laying the foundation for the tie-up.
The KF-X program aims to secure multi-purpose fighter jets, on par with KF-16 fighters, to replace ageing F-4 and F-5 fighters, currently operated by the air force in South Korea.
The program is expected to create jobs for approximately 70,000 people, vitalize the local economy and enhance the brand value of the country's aviation industry, the DAPA said.