Hanwha Group has acquired a 4.99 percent stake in Korea Aerospace Industries, Korea’s sole aircraft original equipment manufacturer, strengthening cooperation with the aerospace firm despite ongoing competition.
According to a filing with the Financial Supervisory Service on Monday, Hanwha Aerospace and its subsidiaries acquired a combined 4.41 percent stake, while Hanwha Systems purchased an additional 0.58 percent, totaling 4.86 million shares.
This is Hanwha’s first investment in KAI since Hanwha Aerospace sold its entire 5.99 percent stake in 2018.
The acquisition is expected to deepen collaboration between the two companies in launch vehicles, satellites and data analytics, as they seek to build an integrated satellite infrastructure spanning low-Earth orbit devices to larger satellite systems.
The investment builds on a memorandum of understanding signed last month to expand cooperation in defense and aerospace.
Under the agreement, the companies plan to collaborate on the localization and development of aircraft engines, development and marketing of drones, and entry into the international market for satellites, launch systems and related services.
Hanwha and KAI are already working together on projects such as the KF-21 fighter jet program.
However, the two firms also compete in several areas, including bids for space projects.
stlee0329@heraldcorp.com
