South korea: South Korea's fair trade watchdog on Monday approved Hanwha Group's recent acquisition of additional stakes in Korea Aerospace Industries Ltd. (KAI).

According to Yonhap News Agency, the Fair Trade Commission's (FTC) approval came after Hanwha Systems Co. recently purchased a 3.45 percent stake in KAI. This acquisition raised Hanwha Group's combined stake in the aircraft manufacturer to 15.89 percent. The group previously held a 9.9 percent stake through Hanwha Aerospace Co.

The Fair Trade Commission highlighted that KAI's largest shareholder remains the Export-Import Bank of Korea, with a 26.41 percent stake, while the National Pension Service holds 8.75 percent. The FTC remarked that Hanwha Group's current 15.89 percent stake does not allow it to exercise substantial influence over KAI's overall management.

Despite this approval, the FTC indicated that it would conduct another merger review if Hanwha becomes KAI's largest shareholder or if Hanwha executives come to represent at least one-third of KAI's executive positions.

KAI, recognized as South Korea's sole aircraft manufacturer, is responsible for producing several advanced defense technologies, including the KF-21 advanced fighter jet, the FA-50 light combat aircraft and its trainer variants, as well as the Surion and Miron helicopters.

Hanwha Group's consistent increase in its stake in KAI aligns with its broader objective to establish a comprehensive aerospace and defense ecosystem, encompassing aircraft, satellites, launch vehicles, ships, and other advanced defense systems.