What Happened
Government Weighs Benefits Of Stronger Defense Industry Competition
The privatization of Korea Aerospace Industries (KAI) is gaining momentum, with the state-run Export-Import Bank of Korea (Eximbank) commissioning a consulting project to examine ways to strengthen Korea’s aerospace industry. Hanwha has increased its stake in KAI to 15.89 percent, sparking debate over the potential benefits and drawbacks of consolidation in the defense industry. The move may ultimately lead to the creation of a larger defense contractor capable of competing with global industry leaders, according to experts. This development was first reported by The Korea Times.