Gyeongnam Expands Land, Sea, and Air to Defense and Space... Hanwha Ocean and Aerospace on the Offensive

Hanwha Ocean Expands Rapidly into MRO and Submarine Businesses

Hanwha Aerospace and KAI Set Sail on Strategic Partnership

Expectations Soar for Job Creation and Regional Economic Growth

Gyeongnam Province is emerging as a hub for the global defense industry and the aerospace sector.

Hanwha Ocean is driving aggressively into the global defense market, opening up new frontiers. Hanwha Aerospace, in collaboration with Korea Aerospace Industries, is strengthening the local industrial ecosystem and steadily laying the groundwork for job creation.

Hanwha Ocean is accelerating the establishment of a shipbuilding and defense industry ecosystem based on mutual growth with the local community. Last year, the company formed a "Naval Vessel MRO Cluster Council" and signed memorandums of understanding with 15 shipyards and maintenance/equipment companies in the Busan and Gyeongnam regions. Since then, most of the seven naval vessel maintenance, repair, and overhaul (MRO) projects conducted to date have been carried out jointly with local partner companies.

Looking ahead, Hanwha Ocean plans to further expand cooperation through the advancement of the MRO business model, entry into domestic and overseas markets, and securing supply chains. The company is also working to narrow the gap between primary contractors and subcontractors by paying performance bonuses to partner company employees at the same level as its own staff.

Perspective rendering of the Jangbogo-3 Batch 2 submarine proposed by Hanwha Ocean for the Canadian Submarine Program (CPSP). The Jangbogo-3 Batch 2 submarine is a hybrid submarine combining Hanwha Ocean's Air Independent Propulsion (AIP) system and Hanwha Aerospace's lithium-ion batteries, boasting the ultimate operational performance.

The company is also putting significant effort into responding to the global market. By acquiring the Philly Shipyard in the United States, Hanwha Ocean has secured a foothold for overseas expansion and is working to strengthen Korea-U.S. cooperation in shipbuilding. If the company secures large-scale projects such as the Canadian submarine project, it expects to generate production-induced effects worth more than 40 trillion won and involve over 300 partner companies. In addition, the company is looking forward to the substantial benefit of creating more than 20,000 jobs.

Cooperation is also expanding in the aerospace and defense sectors. Hanwha Aerospace recently acquired a 4.99% stake in Korea Aerospace Industries (KAI). Hanwha Aerospace emphasized that the purpose of acquiring a stake in KAI is to enhance global export competitiveness in the aerospace and defense sectors and to expand future aerospace business cooperation based on a long-term strategic partnership between the two companies.

Previously, the two companies signed a memorandum of understanding (MOU) for cooperation in defense and aerospace and agreed to establish a mid-to-long-term cooperation framework. Both companies are core enterprises in Gyeongnam, with operations in Changwon and Sacheon, respectively. Last year, these key companies in Gyeongnam achieved combined sales of approximately 13 trillion won. They also directly employ more than 10,000 people.

Hanwha Aerospace possesses competitiveness in the core component sectors of ground defense, such as the K-9 self-propelled howitzer, as well as aircraft engines, radar, and space launch vehicles. Korea Aerospace Industries has secured unrivaled technological capabilities in the development and production of aircraft systems such as fighter jets, helicopters, and unmanned aerial vehicles, as well as in the development of medium- and large-sized satellites and other aerospace systems.

On February 5th, at the Hanwha Building in Jung-gu, Seoul, representatives from Hanwha Aerospace and Korea Aerospace Industries signed a "Joint Cooperation Agreement for Future Core Projects to Strengthen K-Defense Global Competitiveness."

Back in February, Hanwha Aerospace and KAI signed a "Memorandum of Understanding (MOU) for Defense and Aerospace Cooperation" and agreed to establish a mid-to-long-term cooperation framework in key future business areas. The two companies signed the MOU with the aim of strengthening K-Defense export competitiveness and fostering the aerospace and defense industry ecosystem in the Gyeongnam region. As the partnership has progressed beyond a non-binding MOU with Hanwha Aerospace's stake acquisition in KAI, expectations within the local community are rising.

Through the MOU, Hanwha Aerospace and KAI agreed to expand cooperation in various areas, including: localization and development of advanced aircraft engines and system integration; joint development and global marketing of unmanned aerial vehicles for export; joint entry into the global commercial space market, including satellites, launch vehicles, and services; and nurturing the defense and aerospace industry ecosystem and regional supply chains. They also announced plans to expand participation by local SMEs, venture companies, and startups, as well as to localize materials, components, and equipment and strengthen supply chain competitiveness.

The two companies will expand cooperation in various fields, including localization of advanced aircraft engines, joint development of unmanned aerial vehicles, entry into the global space market, and nurturing of regional supply chains. Plans also include expanding the participation of SMEs, venture companies, and startups, as well as the localization of materials, components, and equipment.

This collaboration is considered a starting point for establishing an aerospace industry ecosystem encompassing research and development, production, and maintenance. The aerospace industry base in the Gyeongnam region is expected to be strengthened, centered on the cluster connecting Changwon and Sacheon.

There is also the possibility that this cluster could expand into a South Coast space industry belt linked with regions such as Goheung in Jeonnam and Jeju. Through this, the region anticipates not only strengthening its industrial competitiveness but also attracting young talent and creating new jobs.

Industry experts unanimously agree that it is urgent to lay the foundation for a "Korean SpaceX," secure space sovereignty, and establish an aerospace industry ecosystem. They emphasize the need to build an ecosystem led by large enterprises to secure competitiveness in the space industry.

A Hanwha official stressed, "To be competitive in overseas orders, we must be able to provide land, sea, air, and space services simultaneously, and a scaled-up national champion company can stand tall in the global competition."

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