Hanwha cements position as KAI's second-largest shareholder with 11.21% stake

Hanwha Group has raised its stake in Korea Aerospace Industries to 11.21 percent, solidifying its position as the company's second-largest shareholder.

Hanwha Aerospace disclosed Tuesday that its combined holding in Korea Aerospace Industries had increased from 10.15 percent, or 9,896,023 shares, to 11.21 percent, or 10,930,623 shares, as of June 30.

Hanwha Aerospace lifted its direct stake to 8.67 percent through on-market purchases. Adding the holdings of affiliates Hanwha Systems and Hanwha Aerospace USA, which together hold 1.01 percent, brings the combined total to 11.21 percent.

Hanwha carried out the on-market purchases from June 24 through June 30, funding the acquisition of approximately 150 billion won ($96.9 million) entirely from its own reserves.

Hanwha had already overtaken the National Pension Service to become the second-largest shareholder — behind the Export-Import Bank of Korea, which holds 26.41 percent — when it raised its stake to 9.04 percent on June 16. The latest purchases further entrench that position.

Hanwha Aerospace has already declared its purpose for holding the KAI stake as "participation in management." Industry observers say the group's steady accumulation of shares appears designed to secure a favorable position ahead of any full-scale privatization of KAI.