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FSS requests revision of Hanwha Aerospace's 3.6 trillion won stock sale plan

Published: 28 Mar. 2025, 17:17

A shareholder sits down at an annual general meeting of Hanwha Aerospace on March 25 in Seongnam, Gyeonggi. [THE KOREA JOONGANG DAILY]

Korea's financial regulator on Thursday asked Hanwha Aerospace to submit a revised filing over its plan to raise 3.6 trillion won ($2.5 billion) in capital through a stock sale, citing insufficient information for investors.

The Financial Supervisory Service (FSS) said it found the filing by the Korean defense equipment manufacturer lacking in key areas, including the rationale for the rights offering, communication with shareholders and the intended use of the proceeds.

The FSS said it will thoroughly assess the revised registration once submitted to ensure the requested changes are fully reflected.

In a regulatory filing a week ago, the company said the stock sale was part of its broader global investment plans in future growth sectors. The announcement triggered a sharp decline in the company's share price due to concerns over a dilution of existing shareholders' stakes.

Market observers have noted that Hanwha Aerospace's investment direction is promising but criticized its choice of capital increase amid the company's already strong financial position.

Hanwha Aerospace said it intends to fully cooperate with the authorities' request, adding that it understands it is a procedural step for a capital increase.

Yonhap