Seoul: South Korean defense giant Hanwha Aerospace Co. announced plans on Thursday to raise 3.6 trillion won (US$2.5 billion) through a record stock sale as part of its broader global investment strategy in future growth sectors. The company’s board of directors has approved the issuance of approximately 5.95 million common shares at 605,000 won per share, marking the largest-ever stock sale by a South Korean entity.

According to Yonhap News Agency, Hanwha Aerospace aims to channel the funds into the defense, maritime, and aerospace sectors, anticipating increased opportunities amid Europe’s rearmament push and the United States’ efforts to strengthen its shipbuilding industry. The company plans to acquire strategic production bases in Europe, the Middle East, Australia, and the United States, with a target of achieving 70 trillion won in sales and an operating profit of 10 trillion won by 2035.

From the stock offering proceeds, Hanwha Aerospace intends to allocate 1.6 trillion won towards investments in overseas production facilities and collaborations within the arms industry. The company, known for manufacturing the K9 self-propelled howitzer, also plans to invest 900 billion won in a smart factory and other production facilities, and 800 billion won to expand its shipbuilding capabilities abroad.

Earlier this week, Hanwha Aerospace acquired a stake in the Australian shipbuilder Austal. In a similar move last year, Hanwha Group acquired U.S. shipbuilder Philly Shipyard, bolstering its presence in the global shipbuilding sector. Additionally, the company plans to invest 300 billion won in facilities dedicated to developing engines for unmanned aerial vehicles.

“Through the strategic large-scale investment, we will take another step forward to becoming a global top-tier company in defense, shipbuilding, and aerospace,” said Hanwha Aerospace CEO Son Jae-il.