Seoul: South Korean defense firm Hanwha Aerospace Co. announced its decision to acquire an additional stake in Korea Aerospace Industries (KAI) Ltd. The deal, valued at 500 billion won (US$331.3 million), aims to enhance the strategic partnership between the two companies.
According to Yonhap News Agency, Hanwha Aerospace disclosed in a regulatory filing its plan to purchase 3.38 million shares in KAI by the end of the year. This acquisition will increase Hanwha's stake in KAI to 10 percent. The company stated that the move is intended to "strengthen business cooperation" with KAI, known for manufacturing KF-21 advanced fighter jets.
Korea Aerospace Industries is the sole aircraft manufacturer in South Korea, producing the FA-50 light attack jets and its trainer variants, as well as the Surion and Miron helicopters. Hanwha Aerospace's decision to increase its stake is part of its larger goal to create an integrated aerospace and defense ecosystem that includes aircraft, satellites, launch vehicles, and defense systems.
The two companies have a history of collaboration on significant projects, such as the KF-21 program. In this program, KAI acts as the prime contractor, while Hanwha provides essential propulsion and defense technologies.
In a related image, Hanwha Aerospace CEO Son Jae-il and Korea Aerospace Industries CEO Kang Goo-young were seen attending a signing ceremony for an agreement on future strategic cooperation in central Seoul.