# Hanwha Group acquisition of KAI stake > Live situation record from CLSTR: https://clstr.news/situations/hanwha-group-acquisition-of-kai-stake > Updated: 2026-08-31T03:03:19.000Z. Sources: 8. Developments: 2. Korea Aerospace Industries (KAI) has sought to bolster its global defense export competitiveness through a memorandum of understanding with the Institute for National Security Strategy (INSS) to research security and technology trends. During this period, Hanwha Group has moved to expand its stake in KAI. While the KAI labor union has opposed the move, warning that concentrating decision-making power could create monopolies and weaken the domestic aerospace industry, the Korea Fair Trade Commission has approved the acquisition of a 15.89% stake by Hanwha affiliates. This approval makes Hanwha the second-largest shareholder of KAI. The commission noted that further acquisitions aimed at gaining substantive control or appointing a majority of executives would trigger a new merger review. Hanwha intends to use this position to pursue a long-term strategy of investing 55 trillion won by 2040 to integrate aerospace, defense, and AI technologies. ## Timeline ### 2026-08-31: Hanwha Group receives approval for KAI stake acquisition South Korea's Fair Trade Commission approved Hanwha Group's 15.89% stake in KAI, noting it lacks substantive control. Hanwha now aims to accelerate its aerospace and defense integration strategy. 8 sources. https://clstr.news/cluster/hanwha-aerospace-signs-k9-howitzer-export-contract-with-spain ### 2026-08-20: Korea Aerospace Industries pursues security partnership amid union opposition to Hanwha merger KAI has partnered with the Institute for National Security Strategy to boost defense exports, while its labor union opposes Hanwha’s stake expansion, citing concerns over industry monopolies. 2 sources. https://clstr.news/cluster/korea-aerospace-industries-pursues-security-partnership-amid-union-opposition-to-hanwha-merger --- Cite as: Hanwha Group acquisition of KAI stake. CLSTR, https://clstr.news/situations/hanwha-group-acquisition-of-kai-stake