Hanwha eyes ‘Korean SpaceX’ beyond defense

May 08, 2026, 08:28 am

Hanwha Group is expanding its business territory beyond defense into overseas markets and the space sector, leveraging strong growth in its defense business. As global demand for defense systems rises, the group is strengthening localization strategies across key regions including the United States, Canada and Europe, while accelerating efforts to build a vertically integrated aerospace business. Industry observers expect Hanwha to continue expanding through mergers and acquisitions (M&A) and joint ventures (JV).

According to Hanwha Aerospace, Hanwha Systems and Hanwha Ocean on Wednesday, the group invited former U.S. Pacific Commander Harry Harris and a delegation of senior U.S. defense officials to Hanwha Building in Janggyo-dong, Seoul, for a Korea-U.S. defense cooperation meeting the previous day. Hanwha executives introduced the group’s global defense business status, vision and core weapons system capabilities, while also discussing potential cooperation in the land, air and maritime sectors to support the Korea-U.S. alliance.

Hanwha is actively advancing localization strategies in response to growing global defense demand. The United States has emerged as the most active region for such efforts, particularly following the Korea-U.S. shipbuilding cooperation project known as MASGA. Hanwha Ocean acquired Philadelphia Shipyard in 2024 and, in April, secured a concept design contract for the U.S. Navy’s Next-Generation Logistics Ship (NGLS) project, laying the groundwork for entry into the U.S. naval vessel market.

The possibility of additional M&A deals also remains open. Earlier this year, Michael Coulter, CEO of Hanwha Defense USA, said in media interviews that the company’s two docks in Philadelphia alone would not be sufficient to meet future manufacturing demand and that Hanwha is considering acquiring additional shipyards elsewhere in the United States within the next few years.

Canada is also emerging as a key target market for Hanwha as the Canadian government pushes ahead with the Canadian Patrol Submarine Project (CPSP), a submarine procurement initiative worth about 60 trillion won. Hanwha Ocean has joined the bidding process in a consortium with HD Hyundai Heavy Industries. Hanwha Aerospace plans to establish a joint venture with the Automotive Parts Manufacturers’ Association (APMA) of Canada and locally produce K9 self-propelled howitzers if Hanwha Ocean wins the CPSP contract.

In Europe, Hanwha is expanding its production base centered on Poland. Last year, Hanwha Aerospace established a JV with WB Electronics, Poland’s largest private defense company. The company plans to complete a local production facility by 2029 and mass-produce the 80-kilometer-range CGR-080 guided missile for the Polish military’s Homar-K system. Hanwha is also discussing localization projects for the K9 howitzer with partners in Spain.

Hanwha Group is now extending its focus into aviation and space. The group aims to build a space value chain integrating launch vehicles, satellites, data and services into what it describes as a Korean version of the “SpaceX” model. Under this structure, Hanwha Aerospace would oversee launch vehicles and aircraft engines, while Hanwha Systems would handle satellite manufacturing and data services.

Industry experts say cooperation with Korea Aerospace Industries (KAI) could further transform Hanwha into a comprehensive defense and aerospace company spanning manned and unmanned systems as well as space aviation.

The group recently acquired a 5.09% stake in KAI, becoming its fourth-largest shareholder, signaling stronger ambitions in the aerospace business. Hanwha has also announced plans to increase its stake in KAI to 8% within this year.

KAI, South Korea’s only fully integrated aircraft developer and manufacturer, is regarded as strategically important in both defense and aerospace sectors.

Hanwha is expected to expand cooperation with KAI through joint development of advanced aircraft engines and integrated operational systems for future mass-production models of the KF-21 fighter jet.

#Hanwha Group #Hanwha Aerospace #Hanwha Systems #Hanwha Ocean #SpaceX