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Hanwha Aerospace plans $2.4 billion capital boost for global expansion

Published: 20 Mar. 2025, 18:33 Updated: 20 Mar. 2025, 18:38

JIN EUN-SOO
[email protected]

A K-9 self-propelled howitzer at Hanwha Aerospace's factory in Changwon, South Gyeongsang, on March 16, 2023. [REUTERS/YONHAP]

Hanwha Aerospace announced plans for a 3.6 trillion won ($2.4 billion) capital increase to invest in facilities and research and development (R&D) across the defense, shipbuilding and aerospace sectors.

With this capital boost, the defense company aims to achieve sales of 70 trillion won and an operating profit of 10 trillion won by 2035.

The company also plans to establish key overseas production hubs to capitalize on rising defense spending in Europe, the Middle East and the United States.

Of the funds raised, 1.6 trillion won will be allocated to overseas defense production facilities and equity investments in other defense companies. Another 900 billion won will be used for the construction of a domestic modular charge system factory and R&D initiatives.

An additional 800 billion won will be invested in shipbuilding and maritime defense in the United States.

“This investment will drive Hanwha Aerospace’s growth as a top-tier global defense and aerospace company,” said Hanwha Aerospace CEO Son Jae-il in a release.

Meanwhile, Korea's financial watchdog announced Thursday that it will closely evaluate Hanwha Aerospace's capital increase plan, given its large scale and the fact that it is the first such move since 1999.

BY JIN EUN-SOO [[email protected]]