SEOUL — South Korea is taking another step toward expanding its aerospace industry across Latin America after Korea Aerospace Industries (KAI) and POSCO International joined forces with Mexico’s Federación Mexicana de la Industria Aeroespacial (FEMIA) to develop aerospace cooperation in Mexico.
The three organizations signed a memorandum of understanding (MOU) during South Korean President Lee Jae-myung’s state visit to Mexico, creating a framework for cooperation on aerospace manufacturing, supply chains and potential business opportunities in the wider Latin American market.
Mexico Becomes a New Aerospace Gateway
Under the agreement, KAI plans to explore business models involving local production, technology cooperation and supply-chain localization, while seeking greater participation from Mexican companies.
The cooperation can draw on KAI’s platforms and capabilities across fixed-wing and rotary-wing aircraft, unmanned aerial vehicles, satellites, aircraft maintenance, repair and overhaul (MRO), and airframe structures.
POSCO International will use its global business network to help identify potential opportunities and support the participation of selected Mexican companies in KAI’s aerospace manufacturing supply chain.
FEMIA, which represents more than 100 aerospace companies, will help connect the Korean partners with Mexico’s aerospace ecosystem, identify potential local partners and provide information about relevant government policies.
FA-50 Expansion Is Part of the Bigger Plan
KAI CEO Kim Jong-chul said the company intends to build on cooperation with Mexico as it seeks to expand the FA-50 light combat aircraft into Central America and establish a broader presence in North and South American markets.
The agreement, however, extends beyond a single aircraft platform. The companies are examining cooperation involving aerospace manufacturing, unmanned systems, satellites and maintenance capabilities, while also considering ways to bring Mexican companies into the supply chain.
Part of a Wider Korea-Mexico Partnership
The aerospace agreement was one component of a broader expansion of economic cooperation between South Korea and Mexico.
The two governments’ 2026–2030 Joint Action Plan specifically lists the KAI-FEMIA-POSCO International aerospace MOU among the agreements connected to President Lee’s state visit. The plan also includes cooperation covering areas such as artificial intelligence, defense, space and other sectors.
Mexico’s Economy Ministry said the Korea-Mexico Business Forum in Mexico City brought together about 400 business leaders and representatives, with discussions focused on investment, trade, regional value chains and advanced manufacturing, including aerospace.
Why the Deal Matters for Mexico and Korea
For KAI, Mexico provides an opportunity to develop relationships with an established aerospace manufacturing ecosystem while exploring a larger Latin American market.
For Mexico, cooperation with Korean aerospace companies could create additional opportunities for local suppliers and technology partnerships as the country seeks to strengthen advanced manufacturing and regional supply chains.
The agreement does not itself announce a completed aircraft sale or a confirmed local production facility. Instead, it establishes a framework for the companies and industry group to explore and develop future cooperation.
As discussions move forward, the key question will be how quickly the new partnership translates into concrete projects — and whether Mexico can become a larger platform for South Korean aerospace companies seeking opportunities across the Americas.
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