KAI and Hanwha Aerospace establish joint front for future business development and exports

KAI (Korea Aerospace Industries, Ltd.) and Hanwha Aerospace have entered into a strategic partnership to strengthen the export competitiveness of the K-defense industry and develop the industrial ecosystem by establishing a mid- to long-term cooperative system in key future business areas.

KAI and Hanwha Aerospace signed a Memorandum of Understanding (MOU) on Cooperation between Defense and Aerospace Companies on the 5th at the Hanwha Building in Jung-gu, Seoul.

The signing ceremony was attended by key executives from both companies, including KAI CEO Cha Jae-byung and Hanwha Aerospace CEO Son Jae-il.

Through this MOU, the two companies agreed to collaborate on:

- Domestically produced advanced engines;

- Joint development and marketing of unmanned aerial vehicles;

- Entry into the global commercial space market based on mutual cooperation; and,

- Fostering the defense and aerospace ecosystem and regional supply chain.

Furthermore, the two companies agreed to establish a regular "Future Aerospace Strategy Committee," attended by key executives from both companies. The committee will establish a mid- to long-term cooperative system between the two companies and concretize mutual cooperation to secure shared interests. Furthermore, the committee plans to support the government's balanced regional development policy at the private level by discovering and fostering small and medium-sized enterprises, venture companies, and startups in the Gyeongnam region.

KAI and Hanwha Aerospace plan to jointly develop and export unmanned aerial vehicles (UAVs) and advanced engines, which are attracting attention as future growth engines in the defense and aerospace industries, and to collaborate on entering the global space market.

KAI, Korea's sole developer and manufacturer of complete aircraft, and Hanwha Aerospace, Korea's leading aircraft engine manufacturer, are joining forces to domestically produce engines. This collaboration is expected to lead to the development of optimized engines for each domestic aircraft platform, thereby enhancing competitiveness.

Furthermore, the joint development of UAVs will secure technological prowess and pursue future exports. KAI is developing the Next Generation Air Combat System (NACS), which hyper-connects manned and unmanned combat aircraft, UAVs, and satellites, which is expected to generate significant synergy.

Furthermore, the two companies plan to jointly build a space industry ecosystem encompassing satellites, launch vehicles, and services to identify future business opportunities. This is expected to avoid unnecessary competition, such as defining each company's core areas, and foster a mutually beneficial and cooperative structure.

While pursuing future projects, both companies plan to collaborate on strengthening the technological independence and competitiveness of domestic partners by expanding the defense and aerospace ecosystem, fostering supply chains, and developing R&D programs.

KAI CEO Cha Jae-byung stated, "In an international environment where export competition is intensifying day by day, this strategic collaboration will serve as a milestone in elevating the competitiveness of the domestic defense and aerospace industries." He added, "While supporting the government's balanced regional development policy, we will further expand the export reach of the Korean defense industry by jointly developing and marketing future core businesses such as unmanned aerial vehicles, engines, and space."

Son Jae-il, CEO of Hanwha Aerospace, stated, "This MOU aims to present a new export and shared growth model based on innovation in the domestic defense and aerospace ecosystem. In collaboration with KAI, we will gradually expand this growth and cooperation model based on mutual growth with our partners in the aerospace sector."