The meeting follows a delay the previous day, when the board postponed tabling the appointment of the new chief executive officer after the company union launched protests against what it termed a "parachuting appointment" from the government.
Kim, a former head of the unmanned aerial vehicle division at the Defense Acquisition Program Administration (DAPA), was tapped to lead the company. He graduated from the Air Force Academy and served as an officer for 20 years before joining DAPA as a special recruit. During his tenure at the state arms procurement agency, Kim held various roles including head of defense export support and director of planning and coordination.
Kim is expected to bridge his experience in unmanned aerial systems at the Defense Acquisition Program Administration with the strategic goals of South Korea's primary aerospace firm. While at the state arms procurement agency, he oversaw the development and management of drone programs, a sector that KAI is actively expanding as part of its future growth portfolio. His background in defense export support is also viewed as a potential asset for the company as it seeks to market the KF-21 fighter jet and other indigenous platforms to international buyers.
The KAI union raised concerns over the transparency of the selection process and Kim's professional suitability. Union officials alleged that the internal recommendation committee was bypassed after narrowing the field to two finalists, with Kim suddenly emerging as the nominee. The union also pointed to Kim's previous experience as an advisor to a presidential campaign as evidence of political influence in the selection.
"Internal records show that a candidate recommendation committee was in operation," a KAI union official said. "While the process of narrowing down the candidates to two was underway, a nominee suddenly appeared, bypassing them. If the candidate had come through the normal personnel system, we would have no reason to object."
The controversy reflects long-standing friction within KAI regarding the appointment of military officials to top executive posts. While the union stated that military experience itself is not a disqualifier, it argued that previous leaders from the armed forces have struggled to integrate with existing corporate culture and focused excessively on hiring other former military personnel. Union representatives also questioned whether Kim's specific expertise in drones was sufficient to lead the country's primary aerospace manufacturer.
Structural issues at KAI contribute to the recurring leadership disputes. Although classified as a private company, its largest shareholder is the state-run Export-Import Bank of Korea, which holds a 26.41 percent stake. This ownership structure allows for significant government influence over management. Historically, seven out of the eight individuals who have served as KAI president came from military or government backgrounds, with only one internal promotion to the top spot.
Industry analysts suggest that government intervention is often viewed as a necessity due to the nature of the defense and aerospace sectors. Projects like the KF-21 fighter jet require decades of research and massive capital investment that may not provide immediate commercial returns. Internal assessments suggest that such national strategic projects would be difficult to sustain under a purely profit-driven private management model without state backing.
Despite the current friction, industry observers expect the appointment process to proceed ahead of the annual general shareholders' meeting scheduled for March 26. To meet this timeline, KAI would need to finalize the nomination through Thursday's proceedings or a subsequent provisional board meeting to officially name Kim as a candidate for the internal board of directors.
The incoming chief executive will face immediate pressure to validate the appointment through tangible results. Key tasks include the successful deployment of the KF-21 to the South Korean Air Force and securing new international export contracts. Observers noted that achieving these milestones will be essential for the new leadership to overcome political controversy and rebuild trust with the internal workforce.
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