Hanwha Group's “Space Industry” gets on right track. Kim Dong-kwan, CEO of Hanwha Solutions, was appointed as an inside director of the Group's aviation and defense affiliates, and Hanwha Systems will raise 1.2 trillion won via a rights offering to fund its space and aviation projects.
Hanwha Aerospace held a general shareholders meeting on March 29 and announced that it has voted to appoint President Kim Dong-kwan as an inside director. President and CEO Kim is the head of the “Space Hub,” which oversees the Group's space industry.
CEO Kim is also expected to participate in the management of Hanwha Aerospace, while serving as an inside director of the company, the core of the Group's aviation and space business. Earlier, President Kim was named as another non-executive director, an unpaid registered executive at the nation's only private satellite manufacturing and export company, Satrec Initiative, acquired by Hanwha Aerospace.
The Group will also seek to significantly increase investment in the space and aviation industries. Hanwha Systems held a board of directors meeting on the same day and decided to raise a 1.2 trillion won via a rights offering to fund new businesses such as space and aviation. The fund will be made available for low-orbital satellite communications (500 billion won) and air mobility (450 billion won) over the next three years. Hanwha Systems is striving to develop its satellite communication and air mobility business at the same time in view of potential great synergy.
Low-orbital satellite communication technology is set to be utilized for traffic management and control systems that are considered key sectors of air mobility business. In addition, Hanwha Systems plans to invest 250 billion won in blockchain-based digital platform business. Hanwha, the parent company of Hanwha Group, held a board meeting and launched an Environmental, Social and Governance Committee (ESG) to recognize ESG's value creation and promote compliance as the top priorities of corporate management and bolster effective responses.
It is also seeking to invest in U.S. satellite companies and Canadian drone and antenna corporations. Hanwha Systems has decided to raise 1.2 trillion won by a rights offering in the first half of this year to fund large-scale corporate acquisitions.
Industry source said on March 29, Hanwha Systems is expected to hold a board of directors meeting in early May to finalize its investment plans for three foreign companies, including Overair, as soon as negotiations with the U.S. firm come to an end.
Overair, based in Los Angeles, holds specialized technologies in the field of air taxi, which is considered as an urban air mobility (UAM). Hanwha Systems invested $25 million (approximately KRW 28.3 billion) in January last year and acquired a 30% stake in Overair. Hanwha Systems plans to develop an air taxi by 2024 and test-run the vehicle the following year.
Hanwha Systems also decided to start low-orbital satellite communication business by investing its stake in satellite and antenna companies. The acquisition is reported to have been led by Hanwha Group's top-ranking officials. Hanwha Solutions CEO Kim Dong-kwan is the head of the “Space Hub” team, the Group's aerospace task force launched on March 7.
Investment for three foreign companies, including Overair is expected to cost 700 billion won. Hanwha Systems held a board meeting on March 29 and decided to raise 1.2 trillion won via a rights offering.
IT is the second trillion-unit capital increase pushed by Hanwha Group this year, following Hanwha Solutions, which increased 1.346 trillion won on March 5. An industrial analyzer anticipated that Hanwha will seek to develop the aviation and space sector as the Group's new growth engine following solar and hydrogen.