Korea Aerospace Industries pursues security partnership amid union opposition to Hanwha merger

Korea Aerospace Industries (KAI) has entered into a memorandum of understanding (MOU) with the Institute for National Security Strategy (INSS) to enhance global defense export competitiveness. The partnership aims to combine KAI’s aerospace expertise with the INSS’s security policy research to analyze global security environments, improve defense policies, and conduct joint research on security and technology trends.

Simultaneously, the KAI labor union has issued a rebuttal against Hanwha’s proposal to expand its stake in KAI. While Hanwha argues that a vertical integration of aircraft, engines, and radar systems will strengthen global competitiveness, the union warns that concentrating the supply chain and decision-making power within a single group could weaken the domestic aerospace industry. The union raised eight key concerns, including potential monopolies, conflicts of interest in component selection, and the risk of excluding competing domestic suppliers.