Hanwha to invest 37.6 trillion won into energy, carbon neutrality, defense

Hanwha Group will invest 37.6 trillion won ($29.7 billion) into energy, carbon neutrality and defense and aerospace over the next five years, the Korean conglomerate said Tuesday.

Over 20,000 new jobs will be created in the process.

Of the investment, 20 trillion won will be spent in Korea and 17 trillion won overseas. Most of the investment will go into the three aforementioned sectors which the group has dubbed “new businesses,” while the rest will go into enhancing existing businesses.

In Korea, 4.2 trillion won will go to developing technologies related to renewable energy, especially solar and wind. Hanwha will establish a cutting-edge manufacturing facility for solar-power products and upgrade research and development.

Three trillion won will be spent on technologies related to carbon neutrality, including 900 billion won on developing hydrogen-mix fuels and using electricity to harvest hydrogen from water. The rest will be used in manufacturing environmentally-friendly products.

Defense and aerospace sectors will get 2.6 trillion won. Hanwha Defense has seen increasing demand for its K-9 self-propelled howitzers and is seeking to expand its presence in the market with more weapons.

The group will upgrade its aerospace capabilities with home-grown satellites and propellants and expand into urban air mobility, otherwise known as air taxis.

Its petrochemical unit will get 4 trillion won to improve its facilities and construction will be allocated 2 trillion won.

The group did not provide a breakdown of investments in sectors overseas.

“The decision comes as we have seen the need to solidify existing sectors’ competitiveness and take the lead in the market by making early investments in future technologies amid growing economic and financial uncertainties,” Hanwha Group said in a press release.

“Hanwha Group aims to help boost the growth of the economy led by the private sector through this investment.”

Over the course of the 5 years, Hanwha will recruit more than 4,000 new employees each year in various units including mechanics, aerospace, defense, chemical, energy, construction, service and finance.

BY YOON SO-YEON [yoon.soyeon@joongang.co.kr]