Hanwha Group secures 9.04% stake in KAI... Became the second largest shareholder

Hanwha Group has become the second largest shareholder of Korea Aerospace (KAI).

While Hanwha Group's plan for a 'Korean version of Space

Hanwha announced on the 16th that it had secured a 9.04% stake in KAI, becoming the second largest shareholder after the Export-Import Bank (26.41%).

Hanwha Aerospace secured 6.50% through the purchase of shares on this day, and Hanwha Systems raised its stake to 1.53% by spending 125 billion won. Hanwha Aerospace USA holds a 1.01% stake.

Hanwha Aerospace plans to increase its stake to 9.97% by investing an additional 500 billion won by the end of the year. In this case, Hanwha Group's stake in KAI becomes 12.51%.

Previously, Hanwha announced that the purpose of holding shares in KAI was ‘participation in management.’

Hanwha explained, "If there is a need to participate in KAI's decision-making process, as a shareholder, we plan to review related issues in full consideration of the interests of the company, shareholders, and stakeholders to ensure that it meets the company's management purposes in accordance with legal procedures and methods."

There are also predictions that the privatization of KAI, of which the Export-Import Bank of Korea is the largest shareholder, may gain momentum.

A Hanwha official said, "If the government-led privatization of KAI becomes public in the future, we plan to review whether to pursue acquisition or integration in accordance with the direction of government policy."

Hanwha explained that the expansion of KAI's stake is to strengthen the competitiveness of aerospace and aviation exports and build an ecosystem.

As global competition in the space industry intensifies, led by SpaceX, the idea is that combining the capabilities of both companies will reduce inefficiencies and create synergy.

Hanwha is engaged in business in the fields of aircraft engines, avionics, radar, satellites, space launch vehicles, and ground defense, while KAI is the only complete aircraft development and manufacturing company in Korea and has technological capabilities in satellite development and aerial combat systems.

Hanwha said, “Rather than making wasteful and redundant investments in the space industry, we need to integrate our capabilities into a single business structure,” adding, “It will make it possible to build Korea’s largest space industry value chain connecting launch vehicles, satellites, ground systems, and space services, and it will lead to strengthening the space industry capabilities at the national level.”

Hanwha explained that joint strategy establishment and export marketing are also possible in relation to KAI's flagship aircraft business.

If the next-generation advanced aircraft engine being developed by Hanwha is applied to KAI products, it will also have the advantage of reducing dependence on foreign technology and establishing an independent export system.

In addition, Hanwha emphasized that Hanwha Aerospace has a business site in Changwon and KAI has a business site in Sacheon, so they can form a core axis of the southern region's aerospace and aviation comprehensive belt and contribute to balanced regional development.