*This content was translated by AI.
'Orange Legion' Hanwha shows no restraint in its ambitions for the space and aviation sectors.
Hanwha has expanded its stake in Korea Aerospace Industries (KAI) to 9.04% to solidify its cooperation framework with KAI, strengthen global competitiveness in the space and aviation industries, and build an ecosystem.
Hanwha Aerospace announced via a public disclosure on the 16th that it has secured a 6.50% stake in KAI. This achievement fulfills its earlier plan (announced on May 4) to invest an additional 500 billion won by year-end to increase its KAI holdings ahead of schedule.
Hanwha Systems also acquired additional KAI shares worth 125 billion won, expanding its stake to 1.53%. With this, the Hanwha Group now holds a total of 9.04% of KAI, including the 1.01% stake held by Hanwha Aerospace USA (HAUSA), making it the second-largest shareholder after the Export-Import Bank of Korea (26.41%). The Hanwha Group aims to exceed a 12% stake in KAI through additional investments this year.
This decision by Hanwha carries symbolic significance. It surpasses the 10th% stake in KAI obtained during the Samsung-Hanwha mega-deal, the largest in South Korea's business history, which was completed in 2015. Hanwha has publicly stated that its purpose for holding KAI shares is "corporate participation."
A Hanwha representative, speaking to this newspaper by phone, stated, "In cases where participation in KAI's decision-making process is necessary, we will review relevant matters in accordance with legal procedures and methods as a shareholder, fully considering the interests of the company, shareholders, and stakeholders to align with the company's management objectives."
Industry insiders are closely analyzing Hanwha's significant move. Defense industry source A remarked, "Hanwha has clearly demonstrated its determination regarding KAI. While KAI has successfully executed several projects, it has also faced limitations inherent to public corporations, which may have provided opportunities for private sector involvement."
Meanwhile, opinions among defense industry insiders regarding the possibility of privatization can be understood by examining the shareholding structure. Combining the stakes of the largest shareholder, the Export-Import Bank of Korea (26.41%), and the National Pension Service (8.12%) totals 34.53%. Adding Hanwha's stake, which is expected to reach 12% by year-end, brings the total to nearly 47%, close to a majority. If Hanwha's controlling family and affiliated companies acquire an additional 4% or more of KAI shares and persuade the government, they could become the priority negotiation target.
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*This content was translated by AI.
