[Alpha Biz= Paul Lee] Korea Aerospace Industries (KAI) clarified on May 19 that its investment contract with a U.S.-based artificial intelligence (AI) startup is unrelated to the KF-21 next-generation fighter jet, and that all related procedures were conducted legally.
On May 16, a media report claimed that Shield AI, which typically charges royalties of around 10%, would require approximately 10 billion KRW in royalties if its software were installed on a fighter jet worth about 100 billion KRW. The report included concerns within KAI’s working team that increased sales of the KF-21 could lead to losses and potential intellectual property litigation in the future.
In response, KAI stated that the AI pilot under development is intended for a multi-purpose unmanned vehicle, not the KF-21. They added that Shield AI’s development software will be reviewed and compared with their own AI pilot system. KAI emphasized that the contract with Shield AI contains no clauses related to a 10% royalty and that the investment was made after careful consideration of multiple AI companies.
Regarding criticism of the domestic agency representing Shield AI, KAI clarified that the agency holds exclusive distribution rights for Shield AI in South Korea. Concerning reported internal opposition, KAI explained that risk assessments are typically part of investment decisions, and all opinions were gathered before officially approving the matter through proper procedures.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
