South Korea's defense procurement agency will reportedly sign a contract next week with Korea Aerospace Industries to develop its next-generation KF-X fighter.

The contract comes as the South Korean government plans to modernize its air defense capabilities, and replace its aging fleet of F-4s and F-5s by the mid-2020s. The KF-X program will support the development of a next-generation multi-role fighter, a cooperative project between Korea Aerospace Industries, the country's only aircraft manufacturer, and Indonesian Aerospace.

Indonesia has pledged to front 20 percent of the bill to fund the project, expected to cost roughly $15 billion. Under the contract to be signed next week, six test planes will be produced by 2025, according to Yonhap News Agency.

The project comes with U.S. support, including the transfer of several jet technologies including electronically scanned radars, electro-optical targeting pods, radio frequency jammers, and infrared search-and-rescue systems.

South Korea will launch a task force for the project in January, comprised of 70-80 defense officials.