{"id":21349,"date":"2015-07-26T15:18:18","date_gmt":"2015-07-26T15:18:18","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2015\/07\/26\/hanwha-emerges-as-south-korea-s-defense-giant\/"},"modified":"2026-08-07T21:58:33","modified_gmt":"2026-08-07T21:58:33","slug":"hanwha-emerges-as-south-korea-s-defense-giant","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/top-100\/2015\/07\/26\/hanwha-emerges-as-south-korea-s-defense-giant\/","title":{"rendered":"Hanwha Emerges as South Korea&#8217;s Defense Giant"},"content":{"rendered":"\n<p>SEOUL \u2014 From a gunpowder producer to an all-round defense firm, Hanwha Corp. has emerged as the new defense giant in South Korea.<br\/><br\/>Founded in 1952 during the Korean War, the company is the root for Hanwha Group, the nation&#8217;s 9th largest conglomerate.<br\/>The corporation completed its acquisition of Samsung Techwin and Samsung Thales on June 29. <br\/>The acquisition was signed last November when Samsung Electronics sold a 32.4 percent stake in Samsung Techwin, maker of the K9 self-propelled howitzer and aircraft engines, for $765 million, as part of a deal worth $1.8 billion between Samsung Group and Hanwha Group. <br\/>Samsung Techwin owns a 50 percent stake in Samsung Thales, a precision weapons maker jointly funded by the French Thales Group, so Hanwha Corp. gains managing rights over the company. <br\/>With the acquisition of Samsung&#8217;s defense branches, the revenue of Hanwha Corp. could nearly triple. <br\/>Last year, Hanwha Corp. recorded $1.03 billion <span class=\"rte rte-comment\">28.7 925 million<\/span>\u200b in defense sales of ammunition, bomb fuses, rockets and UAVs.<br\/>Samsung Techwin had about $904.8<span class=\"rte rte-comment\">810<\/span>\u200b million and Samsung Thales $580 million. Combined, Hanwha Corp. could rack up $2.3 billion of sales.<br\/>&#8220;As the top defense manufacturer in Korea, we&#8217;ll compete with the world&#8217;s top 30 defense firms and further increase our presence in the global defense market,&#8221; said Lee Sung-soo, senior vice president of operations at Hanwha Corp.<br\/>Kim Dae-young, an analyst at the Korea Defense &amp; Security Forum, anticipated that Hanwha&#8217;s arms exports will rise.<br\/>&#8220;Hanwha is to be engaged in almost all sectors of the defense industry,&#8221; said Kim Dae-young, an analyst at the Korea Defense &amp; Security Forum. &#8220;In particular, the company will have an unrivaled position in the artillery manufacturing sector both for local supply and exports.&#8221;<br\/>Hanwha&#8217;s key artillery system is the Chunmoo multiple launch rocket system, which is based on a wheeled chassis and can fire an extended 130mm rocket up to 36 kilometers. <br\/>The K9 self-propelled 155mm howitzer will also boost the reputation of Hanwha Corp. The artillery is equipped with state-of-the-art mobility systems, including a 1,000-horsepower engine, and has a firing range of 40 kilometers. <br\/>Samsung Techwin signed a deal with Poland last December to sell 120 K9 howitzers. The deal is valued at about $320 million. The deal was the second of its kind after a deal with Turkey in 2011 to sell 350 K9 howitzers.<br\/><br\/>Jang Won-joon, director of the defense and aerospace industry team at the Korea Institute of Industrial Economics and Trade, pays more attention to the potential synergy between Hanwha and Samsung Thales.<br\/>&#8220;Samsung Thales produces radars, sensors and combat software systems, which are crucial for developing advanced weapons systems,&#8221; Jang said. &#8220;That means Hanwha gets a foothold for developing a full range of modern warfare weapons from sensors to striking weapons.&#8221; <br\/>Earlier this month, a delegation from the Thales Group visited Hanwha headquarters here to discuss business strategy in the future, according to Hanwha Thales officials.<br\/>&#8220;Both sides exchanged views on ways to help strengthen the firm&#8217;s marketing here and abroad,&#8221; a Hanwha spokesman said. &#8220;Discussions are ongoing to lay out business plans for the newly launched firm.&#8221;<br\/>Hanwha Corp. is also expected to expand its influence in the aerospace industry, as it has a 10 percent stake in Korea Aerospace Industries (KAI).<br\/>KAI shares are split by Hanwha, Hyundai Rotem with some 10 percent, Doosan with some 5 percent. The government owns about 26 percent.<br\/>Hanwha has long sought to take over shares in KAI, and it may try to get more stakes in the future to develop itself into a Korean-version Lockheed Martin.<br\/>&#8220;Lockheed Martin, for instance, develops not only fighter aircraft, such as F-16 and F-35, but also guided missiles, radar systems and aerospace systems,&#8221; the spokesman said. &#8220;Should Hanwha find ways to make a synergy effect between its existing weapons systems and KAI&#8217;s aircraft and aerospace businesses, it could be a top defense manufacturer in the world.&#8221;<br\/><br\/>Email: <a href=\"mailto:jsungki@defensenews.com\">jsungki@defensenews.com<\/a><br\/><br\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>From a gunpowder producer to an all-round defense firm, Hanwha Corp. has emerged as a new defense giant in South 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