Hanwha Group receives approval for KAI stake acquisition

The Korea Fair Trade Commission has approved the acquisition of a 15.89% stake in Korea Aerospace Industries (KAI) by Hanwha Group affiliates, including Hanwha Aerospace and Hanwha Systems. The commission determined that the current shareholding does not grant Hanwha substantive control over KAI, as the combined government-linked stake held by the Korea Export-Import Bank (26.41%) and the National Pension Service (8.75%) remains significantly higher at 35.16%.

With this approval, Hanwha becomes the second-largest shareholder of KAI. The group aims to leverage this position to advance its 'Korean SpaceX' vision, integrating aerospace, defense, and AI technologies. Hanwha has announced a long-term strategy to invest 55 trillion won by 2040 to establish a comprehensive space and defense infrastructure.

However, the commission noted that if Hanwha acquires more shares to become the largest shareholder, appoints more than one-third of KAI's executives, or takes the role of CEO, a new merger review will be required. Additionally, KAI's labor union has expressed opposition, citing concerns regarding the concentration of control in a private entity and potential impacts on competition within the aerospace sector.