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The privatization of Korea Aerospace Industries, which developed the KF-21, a Korean supersonic fighter, the FA-50, a light attack aircraft that recently signed an export contract worth trillions of won, and the Surion helicopter, started in earnest.

It was confirmed that the Hanwha Group, which announced that it would buy Daewoo Shipbuilding on the 26th, has also started to acquire KAI. 



Reporter Kim Tae-hoon reports.



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Korea Aerospace Industries KAI is the only airline and defense company in Korea that was launched in 1999 through the merger and abolition of airline affiliates of large corporations.



Although the Export-Import Bank of Korea is the largest shareholder and is a de facto public corporation where the government sends down bureaucrats or military executives, there have been constant arguments that "it should be privatized in order to compete with the world-class aviation and defense companies."



In the meantime, Hanwha Group, Hyundai Motor Company, Korean Air, etc. have paid attention to KAI, and in particular, Hanwha has conducted research services to consider the acquisition of KAI more than twice.



And recently, it has been confirmed that they have started full-scale under-the-ground work for the acquisition of KAI.



According to several key Hanwha officials, Hanwha has contacted the Export-Import Bank and KAI several times this month to discuss KAI's business status, future food, and synergy effects from privatization.



The Export-Import Bank of Korea is of the opinion that "KAI privatization is irresistible", and KAI also welcomes privatization for profit creation and rational management.





An official decision on the acquisition is expected to be made at the Hanwha Board of Directors as early as this year.



One of the effects of privatization is the so-called parachute risk reduction.



This is because, in the meantime, the management has changed a lot every time there is a change of government.



[Jeong Jae-won, Professor, Institute of Security Convergence, KAIST: The CEO came by parachute, so it seems that he had no choice but to pay attention to the government, so it was difficult to establish mid- to long-term strategies such as sustainability of company management…

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There is also a prospect that KAI, which has a variety of aviation platform systems such as fighters, helicopters, and drones, will be able to actively enter new fields such as the development of guided weapons and future aircraft after privatization.



On the other hand, the financial risks of Hanwha Group and concerns about monopoly in the defense industry due to the successive acquisitions of Daewoo Shipbuilding & Marine Engineering and KAI are likely to become controversial during the KAI privatization process.



(Video coverage: Han Il-sang, video editing: Lee Seung-hee)