The aircraft industry is a typical complex product system (CoPS) and one of the system integration industries. In this particular sector, industrial competitiveness is decided by technological capabilities in system level as well as subsystem level. Korea has been involved in the aircraft industry since early 1970s. Technological capability in the system level has been developed based on military aircraft production program. However, subsystem and component level capabilities have been remained less developed. In this paper, the capability building process as well as current problem; of the Korean aircraft industry have been examined. In conclusion, capability building up strategies in the Korean aircraft industry has been suggested.