Hanwha Aerospace Co. is increasing its ownership in its shipbuilding unit after posting its highest-ever operating profit, strengthening the defense chief’s control over the group’s maritime operations.
The South Korean defense contractor will spend 1.3 trillion won ($1.17 billion) to raise its stake in Hanwha Ocean Co. to 42% from 34.7%, according to a regulatory filing. The move consolidates shares previously held by other Hanwha affiliates under the aerospace unit led by Vice Chairman Kim Dong-kwan, the eldest son of group chairman Kim Seung-youn.
The stake purchase follows a year of surging defense exports that pushed Hanwha Aerospace’s operating profit up 190% to 1.72 trillion won. Revenue jumped 43% to 11.25 trillion won, driven by overseas sales of weapons systems including the K9 howitzer and Chunmoo rocket launcher.
The defense manufacturer’s push into shipbuilding gained momentum after acquiring Daewoo Shipbuilding & Marine Engineering, now Hanwha Ocean, in 2023. The company recently partnered with affiliate Hanwha Systems to buy U.S.-based Philly Shipyard, targeting expansion in naval defense as the Biden administration seeks cooperation with South Korean shipbuilders.
A company representative said the consolidation aims to create synergies between defense and maritime operations while pursuing global expansion.
