Boeing Selected as Preferred Bidder for Korea's $2.4B Military Helicopter Deal

Boeing has been selected as the preferred bidder for South Korea's special operations heavy-lift helicopter program, a project with a budget of approximately 3.4 trillion won ($2.4 billion) through 2033.

According to Seoul Economic Daily's reporting on the 18th, the Defense Acquisition Program Administration (DAPA) selected Boeing as the preferred bidder after evaluating a proposal the company submitted alone in November last year. This followed two failed competitive bidding rounds in June and October 2024.

Boeing proposed the CH-47F/ER, an upgraded version of the CH-47F "Chinook" heavy-lift helicopter currently operated by South Korean forces. The aircraft is priced at $57 million per unit (82 billion won), significantly higher than standard transport helicopters.

The program aims to acquire special operations heavy-lift helicopters through foreign commercial purchase rather than domestic development. The aircraft will enhance the aerial infiltration capabilities of the Army Special Warfare Command's special mission brigade and the Air Force's search and rescue operations.

The project budget stands at $2.355 billion (approximately 3.4 trillion won), with procurement scheduled from 2026 to 2033. Approximately 20 aircraft are planned for purchase.

Initially, Boeing with its CH-47F/ER was expected to compete against Sikorsky, a Lockheed Martin subsidiary, which proposed the CH-53K. Boeing and Lockheed Martin are the two giants of the U.S. aerospace defense industry.

However, the first competitive bid announced in June last year ended without success, contrary to early expectations. DAPA quickly issued a second bid notice on October 2, just three days after the first bid deadline of September 29, but Sikorsky again did not register, preventing a competitive bid.

With the competitive bidding structure collapsed, DAPA ultimately selected Boeing as the preferred bidder through evaluation of its sole proposal, citing project urgency and the need to avoid delays in military capabilities.

"In late November last year, we selected Boeing's proposed CH-47F/ER as the target equipment for the project, and technical negotiations are currently underway," a DAPA official said. "We are doing our best to ensure timely deployment as originally planned for the special operations heavy-lift helicopter program."

DAPA is proceeding with technical negotiations and test evaluations through May this year, targeting final contract signing in June.

Defense industry sources believe Lockheed Martin withdrew due to "price concerns." The company's contemplated final offer reportedly exceeded DAPA's total project budget.

At the 152nd Defense Acquisition Program Promotion Committee meeting on April 13, 2023, the committee approved the basic strategy for the special operations heavy-lift helicopter program with a total budget of 3.7 trillion won. However, 300 billion won was subsequently cut following a project feasibility review. Budget increases after committee decisions are rare except in special circumstances.

"Sikorsky concluded that it could not provide the latest CH-53K as a special operations heavy-lift helicopter platform meeting Korea's requirements at the price and conditions DAPA offered," a defense industry source said.

Industry observers note this outcome mirrors the 2022 "Heavy-Lift Helicopter-II Program" decision to procure approximately 20 aircraft to replace the Army's aging CH-47D transport helicopters.

In that case as well, the CH-47F sold through U.S. government-guaranteed Foreign Military Sales (FMS) competed against the CH-53K offered through commercial purchase. After two failed bids where CH-53K pricing exceeded the allocated budget, Lockheed Martin withdrew, and the program was adjusted to FMS, with the CH-47F ultimately selected.

The CH-47F/ER proposed by Boeing is the latest version of the CH-47 series, which has undergone decades of improvements from the CH-47A through the CH-47F and special operations variant MH-47G. The MH-47G, one of the U.S. military's primary special operations helicopters, is a special operations modification of the CH-47F.

Specifications include a length of 15.8 meters, maximum speed of 340 km/h, and combat radius of 630 km. Engine output has increased significantly to 4,800 horsepower with electronic control systems. The aircraft can transport approximately 40 special forces personnel. The per-unit price is lower than the competing CH-53K, which costs $70 million (101 billion won) per aircraft.