Debate grows over KAI privatization as Hanwha aims to expand stake
The privatization of Korea Aerospace Industries (KAI) could gain momentum as the state-run Export-Import Bank of Korea (Eximbank) commissions a 1.8 billion won ($1.36 million) consulting project and the Fair Trade Commission (FTC) highlights the benefits of stronger competition among major defense companies. Although Eximbank and KAI have expressed reservations about a change in ownership, KAI’s…
The privatization of Korea Aerospace Industries (KAI) is gaining attention as the state-run Export-Import Bank of Korea (Eximbank) commissions a consulting project and the Fair Trade Commission (FTC) emphasizes the advantages of increased competition among major defense companies. Despite Eximbank and KAI expressing concerns about a change in ownership, KAI's slower growth compared to its defense industry rivals, even amid a surge in arms exports, is prompting demands for privatization.
Eximbank, KAI's largest shareholder with a 26.41 percent stake, recently chose AT Kearney as the preferred bidder for the consulting project and is moving forward with the next steps. The project aims to explore ways to bolster Korea's aerospace industry and cultivate global anchor companies. Reports suggesting the project was initiated at government request have ignited controversy.
On October 20, KAI CEO Kim Jong-cheol announced that the company's ownership structure has come under scrutiny.
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- Debate grows over KAI privatization as Hanwha aims to expand stake koreatimes.co.kr
