Hanwha Group has acquired a 4.99 percent stake in Korea Aerospace Industries (KAI), the nation’s only aircraft original equipment manufacturer. This move signals a strengthened partnership within the aerospace sector, despite ongoing competition between the two entities.
According to a filing with the Financial Supervisory Service on Monday, Hanwha Aerospace and its subsidiaries collectively acquired a 4.41 percent stake, while Hanwha Systems secured an additional 0.58 percent. This totals 4.86 million shares in KAI.
This investment marks Hanwha’s return to KAI’s shareholder base after Hanwha Aerospace divested its entire 5.99 percent stake in 2018.
The strategic acquisition is poised to enhance collaborative efforts in crucial areas such as launch vehicles, satellite technology, and advanced data analytics. The goal is to establish a comprehensive satellite infrastructure, encompassing everything from low-Earth orbit devices to expansive satellite systems.
This investment reinforces a memorandum of understanding signed last month, focused on expanding cooperation across both defense and aerospace domains.
The agreement outlines plans for collaborative localization and development of aircraft engines, the joint development and marketing of drones, and a coordinated push into the international market for satellites, launch systems, and related services.
Hanwha and KAI already collaborate on significant projects, including the KF-21 fighter jet program.
However, both companies also compete in various areas, notably in bidding for lucrative space projects.
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