According to the filing, Hanwha Aerospace acquired an additional 100,000 KAI shares, or 0.1%, raising its combined stake including affiliates to 5.09%. With its ownership now above 5%, the company revised its holding purpose to management participation. It said specific plans are under review.
Hanwha Aerospace said it plans to invest a total of 500 billion won by the end of this year to buy more KAI shares. Based on KAI’s April 30 closing price of 169,000 won, the purchases would lift Hanwha Aerospace’s stake in KAI to 6.4%.
Hanwha Aerospace said the stake increase is aimed at strengthening cooperation in defense and aerospace and improving global export competitiveness. A company official said the firm is expanding its stake after weighing both business synergies and investment value, adding that if a government-led privatization of KAI becomes a public issue, it will review whether to pursue an acquisition, integration or other steps in line with government policy.
The two companies have worked together on KF-21 export cooperation, air-to-air missile development and performance upgrades for special operations helicopters. In February, they signed a memorandum of understanding to cooperate on domestic production of advanced aircraft engines, joint development of unmanned aircraft and a joint push into the global commercial space market.
Hanwha Aerospace said the companies aim to expand orders under a “one-team” strategy and grow into a leading national defense firm. It also said the partnership could support the creation of an aerospace and defense cluster centered on Changwon and Sacheon in South Gyeongsang Province and help create jobs.
* This article has been translated by AI.
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