Hanwha Aerospace, which is pursuing a paid capital increase of 3.6 trillion won, stated about the background that "the management judged that if we miss this investment opportunity now, we would not only not maintain our current position but also be pushed back."
Han Sang-yoon, an executive director in charge of investor relations at Hanwha Aerospace, responded to a question about the background of the capital increase during a conference call following the announcement of the paid capital increase. He noted, "While there are ways to gradually grow while maintaining financial stability, the current market conditions are not easy, and we had no choice but to make such a judgment to move up, and I seek understanding from the shareholders."
Hanwha Aerospace announced a paid capital increase plan of 3.6 trillion won that day. This is the largest paid capital increase in the history of the Korean stock market. The company stated that it plans to invest the funds raised through this capital increase into overseas defense amounting to 1.6 trillion won, domestic defense of 900 billion won, overseas shipbuilding of 800 billion won, and engine production for unmanned aerial vehicles of 300 billion won. It is expected that concentrated investments will take place within the next three to four years, with the company explaining that the fruits of these investments are expected to emerge after 2030.
Regarding overseas defense investment, the executive director explained, "We are planning various forms of investment in the Middle East and Europe," adding, "It could be direct facility investment, equity investment, or investment through the establishment of a joint venture." He noted that while it is difficult to provide specific details for security reasons, "the certain part is that we are actively engaging in discussions with local partners for specific investments, and we will actively communicate every time these investment deals are finalized."
Overseas defense investment will take place in various forms, including facility investment, equity investment, and the establishment of joint ventures (JVs) with partners. The executive said that while it is difficult to provide specific details for security reasons, "the certain part is that we are actively engaging in discussions with local partners for specific investments, and we will actively communicate every time these investment deals are finalized."
Additionally, he noted, "As demand in Europe and the Middle East is rapidly growing, the demand for localization is also surging," adding, "Considering this trend, quicker investments than planned are possible."
On that day, Hanwha Aerospace presented a goal to achieve consolidated sales of 70 trillion won and an operating profit of 10 trillion won by 2035 alongside the announcement of the paid capital increase. The executive said, "Since the market is rapidly changing and growing, I believe that investment is a way to increase corporate value," and added, "If the investments happen quickly and the results come out quickly, we are also considering returning value to shareholders accordingly."
The executive stated, "I think the point at which overseas sales will exceed domestic sales is about five years from now," and added, "Of the target of 70 trillion won in sales in 10 years, I expect ground defense will be 30 trillion won and the remaining fields will be 40 trillion won, with half of that 40 trillion won being in maritime defense."