This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Korea Aerospace Industries (KAI) is a South Korean aerospace and defense manufacturer whose primary business activity is the development and production of military aircraft and systems. According to SIPRI, the company ranked among the world’s top 100 arms-producing companies in 2024. Its major platforms include the KF-21 Boramae fighter jet, the FA-50 light attack aircraft, and military helicopters. In 2024, the company signed a $3.5 billion contract with the United Arab Emirates for the KF-21 and a $712 million deal with the Philippines to supply twelve FA-50 light combat aircraft. These purpose-built weapons platforms are developed and marketed specifically for military customers.
The company’s product portfolio and revenue are materially tied to defense. KAI’s own corporate segmentation lists military aircraft, military helicopters, and unmanned aerial vehicles as core business divisions alongside commercial aviation. The development of the KF-21 fighter is a national priority program, with BAE Systems receiving contracts from KAI to integrate Identification Friend or Foe systems for the aircraft. This specialization in combat aircraft design and production places the company within the war-industrial complex, distinct from manufacturers of dual-use commodity products.
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Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
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