KAI Labor Union Urges Swift Appointment of New CEO Amid Growing Business Disruptions

KAI Labor Union Urges Swift Appointment of New CEO Amid Growing Business Disruptions: Reporter Kim Jisun / approved : 2025-08-27 03:56:40

Korea Aerospace Industries (KAI) Headquarters in Sacheon, Gyeongnam (Photo courtesy of KAI)

[Alpha Biz= Kim Jisun] SEOUL/SACHEON, August 26, 2025 — The labor union of Korea Aerospace Industries (KAI) called on the government to expedite the appointment of the company’s next chief executive officer, warning that delays are creating a leadership vacuum and fueling instability across Korea’s aerospace and defense sector.

In a statement issued on August 26, the union said: “The appointment of a new CEO was expected to be finalized around the expiration of President Kang Goo-young’s term in early September. However, delays caused by the President’s overseas trip and the prolonged appointment process of the Korea Export-Import Bank chief, KAI’s largest shareholder, have left the succession process at a standstill. The absence of leadership is already taking a toll.”

The union stressed that key projects are being affected, including mass production of the KF-21 fighter jet, exports of the FA-50, the Surion helicopter program, and maintenance, repair, and overhaul (MRO) businesses. Negotiations on export contracts worth billions of Korean won have stalled, raising uncertainty at worksites.

According to the union, KAI’s Q2 revenue declined year-on-year, with industry observers citing delays in executing defense export contracts as the main factor. The company’s stock price has also shown volatility, reflecting investor concerns over disrupted export timelines.

The statement also criticized political intervention: “President Lee Jae-myung pledged during his campaign to make Korea one of the world’s top four defense exporters with AI-driven defense technology. Yet the administration and ruling party pressured KAI’s CEO to step down early while targeting the company with audits, leaving critical projects adrift due to a lack of leadership.”

The union concluded: “The political establishment, which forced the early resignation without providing alternatives, and the government, which allowed this leadership vacuum, must take responsibility. The government must act without further delay, appointing a qualified leader who meets the expectations of both the public and KAI employees.”