KAI privatization controversy intensifies during parliamentary audit

The potential privatization of Korea Aerospace Industries (KAI) became a central issue during a National Assembly audit of the Export-Import Bank of Korea. The bank, KAI’s largest shareholder with a 26.41% stake, stated there are currently no plans to sell its shares. However, questions were raised regarding a recent consulting project commissioned by the bank to enhance aerospace industry competitiveness, which some interpret as preparation for a potential sale or restructuring.

KAI CEO Kim Jong-chul testified that Hanwha Group’s efforts to increase its stake—currently at 15.89%—could lead to a monopoly and weaken the aerospace ecosystem. He emphasized that any change in governance would require the consent of the organization's members.

Meanwhile, the KAI labor union held a large-scale protest in front of the Blue House, with approximately 1,200 members demanding that the government block Hanwha’s attempt to acquire management rights and calling for an official response to their previous demands.