Hanwha Group is accelerating its plan for a “Korea-style SpaceX” encompassing the defense, aviation, and space industries after acquiring a 4.99% stake in Korea Aerospace Industries (KAI). The group aims to grow into a Korean private space company similar to U.S. firm SpaceX, which leads the space industry through rocket launches and satellite services.

According to the Financial Supervisory Service’s electronic disclosure system on the 16th, Hanwha Aerospace stated in its business report filed that day that Hanwha Group’s consolidated affiliates hold 4,864,000 shares of KAI common stock. This corresponds to a 4.99% stake in KAI and represents the combined holdings of KAI shares owned by Hanwha Aerospace, Hanwha Systems, and Hanwha’s U.S. subsidiaries. Hanwha Aerospace purchased about 2.67 million KAI shares in October last year and has since expanded its stake through additional purchases by affiliates. Defense specialist Hanwha Systems also disclosed on the 15th that it acquired 566,635 KAI common shares for KRW 59.9 billion in November last year.

This is the first time in about seven years that Hanwha Group has purchased a stake in KAI since Hanwha Aerospace sold its entire 5.99% stake in KAI in 2018. As a result, Hanwha Group has become KAI’s fourth-largest shareholder, after the Export-Import Bank of Korea (26.4%), the National Pension Service (8.2%), and Fidelity Investments (7.7%).

The industry views this share acquisition as a strategic investment by Hanwha Group to cover the entire aviation and space sector. In 2021, Hanwha launched its integrated space business brand “Space Hub,” designating the space industry as a future growth engine.

KAI is cited as a key partner for Hanwha Group’s leap into becoming a comprehensive private space company. Hanwha Group has maintained a cooperative relationship with KAI by supplying engine and radar components for the Korean Fighter (KF-21) project.

The two companies are also expected to strengthen cooperation in the space sector, which is regarded as having strong future growth potential. Hanwha Group has strengths in launch vehicles, payloads, and satellite sensors, while KAI is considered strong in satellite manufacturing and contract experience related to the space industry. An industry official said, “Securing a 5% stake signifies an intention to further solidify strategic cooperation.”

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