Hanwha Systems, 1.2 Trillion Won Paid-in Capital Increase... "Investment in Satellite Communication and Air Mobility"

[Asia Economy Reporter Jeong Hyunjin] Hanwha Systems announced on the 29th that it will proceed with a paid-in capital increase worth 1.2 trillion KRW to secure new growth engines through investments in satellite communications and air mobility.

Hanwha Systems held a board meeting on the same day and resolved accordingly, as disclosed. Over the next three years starting this year, Hanwha Systems will invest 500 billion KRW in low Earth orbit (LEO) satellite communications, 450 billion KRW in air mobility, and 250 billion KRW in blockchain-based digital platform businesses. Including these new investments, the company also revealed its goal to achieve sales of 23 trillion KRW by 2030.

Hanwha Systems stated its plan to apply the technology it has secured over 20 years of participation in military satellite communication system development to civilian satellite communications. The goal is to launch an independent communication satellite by 2023 and begin a pilot service for low Earth orbit satellite communications, with plans to officially launch the service in 2025. Kim Yeoncheol, CEO of Hanwha Systems, said, "The sales target for the satellite communication business by 2030 is 5.8 trillion KRW." Morgan Stanley projected the global low Earth orbit satellite communication market size to exceed 320 trillion KRW by 2040.

Previously, Hanwha Systems acquired the UK satellite antenna company Phasor Solutions last year and made equity investments in the US portable antenna technology company Kymeta. Both companies specialize in electronic satellite antenna technology that is small and flat, unlike the traditional dish-shaped mechanical satellite antennas. Hanwha Systems explained that through cooperation with these companies, it plans to secure proprietary aviation satellite communication technology.

Hanwha Systems is also investing in the air mobility business. Since 2019, it has been developing the air mobility aircraft "Butterfly" together with the US company Overair, and plans to test the core "electric propulsion system" of the air mobility aircraft in the US during the first half of this year. Hanwha Systems stated, "We plan to complete aircraft development by 2024 and start pilot services in 2025," and forecasted, "The expected sales of the air mobility business by 2030 are 11.4 trillion KRW."

Hanwha Systems noted that since low Earth orbit satellite communication technology will be utilized in the core traffic management and control systems of the air mobility business, it will create synergy to reduce costs and maximize efficiency.

This paid-in capital increase will be conducted through a rights offering to existing shareholders followed by a general public offering of unsubscribed shares. The record date for new share allocation is April 22, and the subscription period for existing shareholders is scheduled for June 3?4.

This content was produced with the assistance of AI translation services.