International military delegates chat with exhibitors next to a FA-50 multirole fighter jet model developed by Korea Aerospace Industries (KAI) at the Defense and Security 2025 exhibition in Nonthaburi, on the outskirts of Bangkok, Thailand. File. Photo by RUNGROJ YONGRIT / EPA
May 4 (Asia Today) — Hanwha Aerospace will acquire additional shares in Korea Aerospace Industries to strengthen cooperation in aviation, space and defense.
Hanwha Aerospace said in a regulatory filing Monday it decided to purchase about 2.96 million additional KAI shares on the open market. The acquisition is valued at up to 500 billion won ($340 million), equivalent to about 2.98% of the company’s equity capital.
The transaction will expand Hanwha Aerospace’s existing stake. The company currently holds about 3.31 million KAI shares. After the additional purchase is completed, its total holdings will rise to about 6.27 million shares, increasing its stake to 6.43%.
The purchase will be made in cash through open-market transactions from this month through December. The final acquisition size may vary depending on market conditions, including share prices.
Hanwha Aerospace said the purpose of the acquisition is to strengthen business cooperation. Industry observers view the move as a strategic step to deepen ties between the two companies in the aerospace and defense sectors.
KAI is South Korea’s leading aerospace company, producing aircraft, satellites and aerospace equipment. It reported 3.7 trillion won ($2.51 billion) in revenue and 187.3 billion won ($127 million) in net income last year.
The investment is expected to help Hanwha Aerospace seek stronger synergies between its businesses in space launch vehicles, aircraft engines and defense systems and KAI’s aircraft and space platform capabilities.
— Reported by Asia Today; translated by UPI
© Asia Today. Unauthorized reproduction or redistribution prohibited.
Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260504010000433