South Korea’s leading private aerospace company Hanwha Aerospace, which specializes in spacecraft engines, aircraft components, and defense systems, has announced plans to raise approximately 3.6 trillion won ($2.5 billion) through a paid-in capital increase—marking the largest equity offering in the history of the South Korean stock market. A paid-in capital increase is a method by which a company raises funds by issuing new shares.
On Mar. 20, Hanwha Aerospace said it plans to issue 5,950,500 common shares at a projected price of 605,000 won ($413) per share. The company’s stock closed at 722,000 won ($493) that day. Of the total proceeds, approximately 1.2 trillion won ($0.82 billion) will be allocated for facility investments, while 2.4 trillion won ($1.6 billion) will be used for acquisitions.
The Financial Supervisory Service (FSS) will review the company’s securities registration filing for the capital increase, examining whether the plan poses risks to shareholder rights or creates excessive financial exposure.
“In an economy where overall momentum is weakening, it is meaningful that a company has chosen to move forward with such an investment decision amid uncertainty,” said FSS Governor Lee Bok-hyun. “We view this very positively and will expedite the review process as much as possible.”
Hanwha Aerospace said the decision reflects its intent to respond swiftly to shifting geopolitical and defense dynamics, including rising military spending in Europe, moves toward defense self-reliance, and efforts in the United States to bolster its maritime defense and shipbuilding sectors. The company also said it aims to expand its overseas presence in defense exports and strengthen its research and development capabilities.
Of the expected proceeds, about 800 billion won ($0.55 billion) will be invested in securing a foothold in the U.S. shipbuilding and defense markets. On Mar. 17, Hanwha acquired a stake in Australian defense firm Austal, which owns shipyards in the United States, and in December 2024 completed the acquisition of local shipbuilder Philly Shipyard. An additional 1.6 trillion won ($1.09 billion) will go toward international ground defense projects, including a K9 self-propelled howitzer production facility in Romania. The remaining 900 billion won ($0.6 billion) will be directed toward domestic investments in smart factories and key defense production infrastructure.
