Korea Aerospace Industries has launched a development project for small helicopters, with the Korean government and Airbus Helicopters sharing in the cost.

The funding plan for the $1.4 billion development project involves the Defense Acquisition Program Administration contributing more than $500 million to the project and the Korean Ministry of Trade, Industry and Energy contributing more than $300 million.

The remainder will be financed by KAI and Airbus.

The contracts cover the development of light civil helicopter, expected to be certified in 2020, and light armed helicopters, scheduled to be introduced two years later, KAI said in a news release.

After the project is completed, KAI will exclusively produce light civil and armed helicopters. KAI and Airbus Helicopters will jointly promote the new helicopters on the global market.

The new small helicopters will replace the aging 500MD and AH-1S of the South Korean military.