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Photo = Korea Aerospace Industries |
[Alpha Biz= Kim Jisun] The labor union of Korea Aerospace Industries (KAI) has strongly opposed Hanwha’s recent stake acquisition and stated intention to participate in management, calling it a de facto attempt to gain control.
In a statement on May 7, the union said Hanwha’s purchase of a 5.09% stake goes beyond a simple investment and marks “the starting point for securing control over KAI.” It warned that any attempt to join the board or increase its stake would be met with full resistance.
The union raised concerns over conflicts of interest, noting that Hanwha and KAI compete in the same defense sector. It argued that management involvement by a competitor could expose sensitive information related to business strategy, contracts, and R&D, potentially affecting national defense capabilities.
It also warned that Hanwha’s growing vertical integration in defense—through affiliates such as Hanwha Aerospace, Hanwha Systems, and Hanwha Ocean—could disrupt the balance of Korea’s defense industry if KAI falls under its influence.
The union further expressed concerns over potential personnel вмешательство, organizational restructuring, and talent outflows, citing past M&A cases involving Hanwha where labor conditions deteriorated.
KAI’s union said it will oppose any board participation, block management interference, and take all possible measures if additional stake acquisitions are pursued.
Hanwha recently increased its stake in KAI to over 5% and changed its stated purpose of holding shares from “investment” to “management participation,” fueling speculation over a longer-term M&A strategy in the aerospace and defense sector.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
