South Korea's Hanwha to raise KAI stake above 12% by end-2026, cites global space race (updated)

Hanwha Aerospace Co

16/06/2026 09:59

Recasts, adds quote
SEOUL, June 16 (Reuters) - South Korean defence-to-aerospace group Hanwha said on Tuesday it plans to raise its combined stake in Korea Aerospace Industries (KAI) to more than 12% by the end of 2026, citing the need for closer ties as global competition in the space industry intensifies. 
Hanwha said the rise of SpaceX showed the space industry had moved beyond technological competition into a contest of capital and scale, while South Korea's space and aerospace industry remained constrained by a limited domestic market and overlapping investment by companies. 
"Global competition in the space industry, represented by SpaceX, is intensifying," Hanwha said in a statement, adding that combining Hanwha and KAI's capabilities could "remove inefficiencies and create synergies" to strengthen South Korea's national aerospace competitiveness. 
Affiliate Hanwha Aerospace, which is South Korea's largest defence firm, said it had secured a 6.5% stake in KAI under a previously announced 500 billion won ($331.41 million) share purchase plan. 
Affiliate Hanwha Systems also spent 125 billion won to raise its KAI stake to 1.53%, while Hanwha Aerospace USA holds 1.01%, bringing Hanwha Group's combined stake in KAI to 9.04%, the company said.
That makes the conglomerate the second-largest shareholder in KAI, Hanwha said. 
Hanwha Aerospace's board also approved an additional investment of 500 billion won in KAI shares by the end of this year, which would lift Hanwha Aerospace's stake to about 9.97%, and raise Hanwha Group's combined holding above 12%, the statement said. 
KAI is South Korea's only developer and manufacturer of complete aircraft and also has capabilities in satellites and aerial combat systems.
($1 = 1,508.75 won)

 (Reporting by Jack Kim and Joyce Lee
Editing by Ed Davies)
 ((jack.kim@thomsonreuters.com; +822 6936 1455;))