Korea Eximbank Rules Out Sale of KAI Stakes

During a National Assembly audit on October 20, the Export-Import Bank of Korea (Korea Eximbank), the largest shareholder of Korea Aerospace Industries (KAI), firmly stated that it currently has no intentions to sell its stake. Despite fierce debates surrounding concerns about a defense monopoly and opposition from stakeholders, Export-Import Bank of Korea President Hwang Ki-yeon specifically denied that recent consulting services provided to KAI were conducted with the aim of facilitating a sale.

President Hwang emphasized, "The service was not conducted on the premise of privatization or sale, and there is no current plan to sell KAI." The commissioning of these consulting services, worth 1.8 billion won ($1.36 million), was met with criticism for overlapping with Hanwha Group's stake expansion. While dismissing questions about possible political involvement, including from the Office of the President, Hwang acknowledged the difficulty in predicting future plans.

KAI CEO Kim Jong-chul warned against Hanwha Group's attempt to gain management rights, citing potential monopolistic issues and a negative impact on the competitive aerospace industry ecosystem. The labor union of KAI protested in Seoul, urging the government for direct action against the Fair Trade Commission's decision on Hanwha's acquisition.

This controversy surrounding KAI's privatization and Hanwha's stake expansion extends beyond mere corporate competition, posing a significant challenge to the defense industry's monopoly structure and fair competition system.