Hanwha Aerospace to boost KAI stake to 10 percent

The 500 billion won share purchase deepens Hanwha Aerospace’s partnership with Korea Aerospace Industries as the two expand cooperation in fighter jets and broader defense projects.

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The KF-21 fighter jet at its launch ceremony on March 25 at the Korea Aerospace Industries headquarters in Sacheon, South Gyeongsang

Hanwha Aerospace said Tuesday it will acquire an additional stake in Korea Aerospace Industries (KAI) in a deal valued at 500 billion won ($331.3 million) to strengthen its strategic partnership.

In a regulatory filing, Hanwha Aerospace said it plans to acquire 3.38 million shares of KAI by the end of this year, raising its stake in the company to 10 percent.

Hanwha Aerospace said the acquisition is aimed at "strengthening business cooperation" with KAI, the manufacturer of KF-21 advanced fighter jets.

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KAI, as the sole Korean aircraft manufacturer, also builds the FA-50 light attack jet and its trainer variants, as well as the Surion and Miron helicopters.

The defense company has been steadily increasing its stake in KAI as part of its broader ambition to establish an integrated aerospace and defense ecosystem spanning aircraft, satellites, launch vehicles and defense systems.

The two companies already collaborate on major projects, including the KF-21 program, in which KAI serves as the prime contractor and Hanwha supplies key propulsion and defense technologies.


Yonhap

stake acquisition hanwha aerospace korea aerospace industries defense industry industry kf-21 fighter jet business

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