# South Korea's Hanwha Weighs KAI Acquisition

Hanwha-linked companies hold 15.9% of Korea Aerospace Industries (KAI), and acquiring the Export-Import Bank of Korea’s 26.4% stake would raise their combined ownership to 42.3%; the acquisition has not been completed, and no specific solicitation is identified. The potential combination could bring aircraft production together with Hanwha capabilities in engines, radar, missiles, and space. Hanwha has also announced a planned 55 trillion won (about $41 billion) aerospace and defense cluster investment through 2040.

- The potential consolidation could shape competition for larger, integrated Korean defense programs and create opportunities for contractors in Korean and European supply chains.
- Companies should assess where their capabilities could support aircraft, engine, radar, missile, or space programs and evaluate relevant supply-chain or partnering opportunities.
- The Export-Import Bank of Korea’s stake and possible regulatory review are relevant to the transaction’s status; this remains a prospective corporate development, not an awarded contract or open procurement opportunity.

**Jurisdictions:** international
**Industries:** Defense & Military
**Published:** November 11, 2026

### Government Entities
- Export-Import Bank of Korea
- Korea Fair Trade Commission

### Vendors
- Hanwha Group (Potential acquirer)
- Korea Aerospace Industries (KAI) (Potential acquisition target)
- Hanwha Aerospace ()
- Hanwha Systems ()

### Key Quotes
> It is a strategy that can elevate the global competitiveness of Korea's defense industry.
> — Kim Dae-jong, business professor at Sejong University

### Sources
- [The case for a Hanwha-KAI merger, from Lockheed Martin to SpaceX - The Korea Herald](https://www.koreaherald.com/article/10933937) - The Korea Herald