Hanwha Aerospace held a declaration ceremony for shared growth cooperation to promote innovation in the defense and aerospace industries on Monday at its R&D center at its Plant 3 site in Changwon, South Gyeongsang Province. About 80 people attended, including representatives from 56 partner companies as well as central and local government officials.
The company said it will begin the 30 billion won (about US$22 million) program this year to strengthen advanced defense technologies and support joint growth.
Under the program, if partner companies pursue advanced R&D and localization of key components, Hanwha Aerospace will cover all costs needed for development, including direct development expenses, research activity costs, facility investment and infrastructure.
Hanwha Aerospace will also pay the full partner-company contribution required when suppliers join government R&D programs for small and midsize businesses, including those run by the Korea Institute for Advancement of Technology for defense (component localization) and the Ministry of SMEs and Startups (public-private joint technology commercialization). In strategic defense areas such as AI and robotics, not only existing partners but also small, competitive firms and startups can participate.
The company said it will significantly expand financial support for suppliers. To back rising defense demand and export opportunities, it will triple its shared-growth fund to 150 billion won from 50 billion won.
Hanwha Aerospace also said it will work with the Defense Industry Mutual Aid Association to create the industry’s first program to reduce advance-payment performance guarantee fees, aiming to ease suppliers’ financial burden during export contract negotiations.
Jo Jeong Hyun, CEO of SG Solution and head of the shared-growth cooperation council, said, “With the new shared-growth cooperation system, we will trust Hanwha Aerospace as a reliable partner and take bolder challenges to achieve technological independence and global growth.” He added, “We appreciate the creation of this system and look forward to a stronger future.”
Hanwha Aerospace CEO Son Jae Il said, “The competitiveness of K-defense starts with the competitiveness of our partners’ components.” He said the company will treat suppliers not as simple counterparties but as strategic partners that share technology and drive growth together, putting into practice the group’s philosophy of growing “together, farther.”
* This article has been translated by AI.
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