Hanwha Group Vice Chairman Kim Dong-kwan visited Saudi Arabia to tour Hanwha Aerospace's Middle East and North Africa (MENA) regional headquarters, which opened in Riyadh on the 4th, and encouraged employees. He also reportedly met with senior Saudi officials, including Minister of the National Guard Abdullah bin Bandar Al Saud. This was Kim's second meeting with Minister Abdullah, following Nov. last year.

According to the business and defense industries on the 23rd, Vice Chairman Kim departed by private jet on the 20th and landed at Riyadh airport in Saudi Arabia that evening. He is said to have met Minister Abdullah on the 21st, the following day. Kim appeared to accompany Minister of National Defense Ahn Kyu-baek, who was visiting Saudi Arabia, to promote K-defense sales.

Kim Dong-gwan (right), Vice Chairman of Hanwha Group, meets last November with Abdullah bin Bandar Al Saud, Minister of the Saudi National Defense Ministry, to discuss cooperation in security and economic areas of Saudi Arabia's national development strategy Vision 2030. /Courtesy of Hanwha

Saudi Arabia is Hanwha's forward base for its defense business in the Middle East. To target the Middle East, where weapons replacement demand is expected to reach about 130 trillion won, Hanwha established the MENA entity.

Vice Chairman Kim also met Minister Abdullah at the Lotte Hotel in Seoul in Nov. last year. At the time, Vice Chairman Kim and Minister Abdullah agreed to strengthen cooperation on localizing the National Guard, joint development, and maintenance, repair and overhaul (MRO).

Ahn Gyu-baek, Minister of the Ministry of National Defense, is posing for a commemorative photo on the 21st (local time) in Riyadh, Saudi Arabia, with Abdullah bin Bandar, Minister of the Saudi National Defense Ministry. /Courtesy of the Ministry of National Defense

Saudi Arabia plans to localize 50% of its defense expenditure by 2030. It plans to introduce armored vehicles, self-propelled howitzers, multiple rocket launchers, and air-defense systems to strengthen its capabilities. To that end, Hanwha Aerospace is reviewing cooperation measures starting with the establishment of a local entity, including ▲ technology transfer ▲ joint development ▲ local production.

Hanwha Aerospace is said to have signed a contract on the 7th to supply guided munitions to Saudi Arabia worth 402.4 billion won. Hanwha is not disclosing the destination country for the weapons exports or the size.

Hanwha Aerospace Redback armored vehicle. /Courtesy of Hanwha Aerospace

In Dec. last year, it signed a contract for components (multi-function radar) for the Saudi export version of Cheongung-II worth 946 billion won. Hanwha Aerospace and Hanwha Systems also signed a tripartite memorandum of understanding (MOU) with the Saudi Ministry of the National Guard for defense cooperation at the Saudi defense exhibition (WDS 2024·World Defense Show) last year.

An official in the defense industry said, "Exports to Saudi Arabia are a good opportunity to build a track record in the Middle East," adding, "Given the high export potential of the Redback next-generation infantry fighting vehicle (IFV) and the K9, Vice Chairman Kim appears to have stepped in personally."

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