Hanwha System Buys 0.58% Stake in KAI, Citing Space and Defense Cooperation

By Oh Jooseok Posted : March 15, 2026, 18:36 Updated : March 15, 2026, 18:36
Hanwha System logo. (Hanwha System)
Hanwha Group has bought shares in rival Korea Aerospace Industries, or KAI, for the first time in more than seven years.

A business report filed Friday and cited Sunday by South Korea’s Financial Supervisory Service said Hanwha System, the group’s defense affiliate, bought 566,635 KAI common shares in November for 59.9 billion won.

The stake equals 0.58% of KAI’s outstanding shares. Hanwha last held KAI shares in 2018, when Hanwha Aerospace sold its entire 5.99% stake. 

Defense industry officials said closer cooperation between Hanwha and KAI could strengthen South Korea’s competitiveness in defense and aerospace. The two companies, however, have also competed in bids tied to a space project involving a small-satellite system.

On the purchase, Hanwha System said the purpose of acquiring the stake was to strengthen cooperation in aerospace and defense businesses, adding that no additional acquisition plan has been decided.



* This article has been translated by AI.

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