Hyundai Rotem to acquire Hyundai Wia defense division

Hyundai Rotem has decided to acquire the defense business division of Hyundai Wia for approximately 358.4 billion KRW, a move aimed at consolidating Hyundai Motor Group’s land-based weaponry operations. The acquisition, which includes assets, liabilities, personnel, and intellectual property, is expected to be finalized by March 31, 2025, following an extraordinary general meeting of shareholders next month.

Through this vertical integration, Hyundai Rotem will gain the ability to internally produce core armament components, such as the 120mm main gun for K2 tanks and 155mm barrels for K9 self-propelled howitzers, which were previously outsourced. This shift is expected to reduce costs, improve process efficiency, and strengthen the company’s ability to respond to international export demands.

For Hyundai Wia, the sale marks a strategic shift toward future mobility and robotics. By divesting its defense unit, the company intends to focus its resources on growth sectors such as thermal management systems, equal-velocity joints, and smart factory solutions. Hyundai Wia will retain ownership of certain real estate at the Changwon plant, which it will lease back to Hyundai Rotem.