Fair trade watchdog approves Hanwha's acquisition of additional KAI stakes

Seoul, August 31 (Yonhap) - South Korea's antitrust authority greenlit Hanwha Group's recent expansion of its ownership in Korea Aerospace Industries Ltd. (KAI) on Monday. The Fair Trade Commission (FTC) approved the purchase of a 3.45 percent stake by Hanwha Systems Co., which added to Hanwha Group's existing 15.89 percent stake in KAI, including the 9.9 percent controlled by Hanwha Aerospace Co. The firm with the most shares in KAI is the Export-Import Bank of Korea, owning 26.41 percent, followed by the National Pension Service at 8.75 percent.

FTC officials deemed Hanwha Group's 15.89 percent stake insufficient to exert substantial control over KAI's management. However, a new FTC review would be triggered if Hanwha becomes KAI's biggest shareholder or if key FTC members constitute one-third of KAI's executive team. KAI, the nation's sole aircraft manufacturer, produces high-tech defense systems such as the KF-21 advanced fighter jet, FA-50 light combat aircraft, and various trainer variants and helicopters.

Hanwha Group has been methodically expanding its presence in KAI to create a cohesive aerospace and defense network encompassing aircraft, satellites, launch vehicles, ships and other cutting-edge defense technologies.