Hanwha Aerospace, a subsidiary of Hanwha Group’s aviation and defense industry, will become the largest shareholder by acquiring a stake in Setrec I, the only satellite specialist in Korea. Chairman Seung-yeon Kim (pictured) is interpreted as a paving stone to reinforce the aerospace business promoted by the group’s future growth engine.
Hanwha Aerospace announced on the 13th that it had signed a stake acquisition contract with Setrec I. It decided to acquire about 20% (59 billion won) of issued stocks for new stocks and secure about 30% of the shares by acquiring convertible bonds (50 billion won). When the acquisition process for new shares is completed in April, it will become the largest shareholder of Setrec I.
Setrec-I was founded in 1999 by the KAIST Satellite Research Center, which developed Korea’s first satellite, Wooribyul. Current CEO Kim Eul is also a former developer of Wooribyul No. Setrak I, a KOSDAQ-listed company, posted sales of 70.2 billion won and net profit of 7.3 billion won in 2019. It is the only company in Korea with the technology to develop and manufacture core components such as satellite bodies, terrestrial systems, and electronic optical payloads.
A Hanwha official said, “It is a decision to preempt the technological advantage by securing technological capabilities for satellite development” in connection with the acquisition of the stake. In a letter to shareholders on the same day, Setrec I also emphasized, “This investment attraction is to actively advance into the space market and achieve the company’s growth through synergy with Hanwha.” He added, “The current management has agreed with Hanwha to operate the company independently and maintain the corporate culture.”
It is analyzed that Hanwha’s investment is in accordance with Chairman Kim’s instruction that future growth engines such as aviation and space business must be secured in a hurry. In this year’s New Year’s speech, he ordered that opportunities should be preoccupied in new businesses such as aviation and space, mobility, and green hydrogen energy.
Hanwha Aerospace is in charge of developing a liquid rocket engine for the Korean launcher Nuri (KSLV-2) in connection with the space satellite business. Hanwha Systems, a subsidiary, manufactures components such as image radar (SAR), a satellite mounted chain, and is engaged in some business in the terrestrial body sector such as satellite antennas and communication terminals.
Reporter Kang Kyung-min [email protected]
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