Hanwha Group to Invest $299 Million in Its US Defense Subsidiaries

Hanwha Group has decided to inject about $299 million, roughly 415 billion won, into two of its United States subsidiaries, underscoring the South Korean conglomerate's determination to deepen its foothold in the American defense industry. Industry officials said Sunday that the funding will flow into Hanwha Defense USA and Hanwha Futureproof through rights offerings, with several Hanwha affiliates participating as shareholders.

Of the total, Hanwha Aerospace will contribute $149 million to Hanwha Defense USA, its wholly owned subsidiary responsible for the group's land defense operations in the U.S. That single injection is about 30 percent larger than the roughly 159.7 billion won Hanwha Aerospace has invested cumulatively in the unit to date, signaling a notable step-up in commitment.

Separately, a group of Hanwha companies will subscribe to a $150 million rights offering issued by Hanwha Futureproof, a vehicle dedicated to acquiring strategic assets in the United States. Hanwha Aerospace is set to cover half of that amount, while Hanwha Ocean and Hanwha Systems will each take on 18.75 percent and Hanwha Solutions will provide the remaining 12.5 percent, reflecting a coordinated, group-wide approach to the U.S. expansion.

The fresh capital comes on the heels of a major win for Hanwha Defense USA, which was tapped last week to build prototypes under a U.S. Army program aimed at introducing wheeled self-propelled artillery systems. Under the agreement, the company will deliver six K9MH units — a wheeled variant of its K9 self-propelled howitzer — with an option for 12 more, in a contract with a cumulative value of $262.9 million. Because Hanwha Defense USA was named the sole contractor, analysts note the program could eventually be worth more than $7 billion once mass production begins.

To support that effort, Hanwha Defense USA leased a previously idle plant in Opelika, Alabama, in April and has since invested roughly $2 million to convert it into an integration and testing facility for the K9MH system, positioning the company to scale up production quickly if the Army moves forward with larger orders.

Beyond its land systems business, Hanwha is broadening its ambitions across the wider U.S. defense sector. The group is also expanding its naval operations centered on the Philly Shipyard and is pursuing the acquisition of Austal USA, moves that together point to Hanwha's strategy of building an integrated land-and-sea defense manufacturing presence in the United States.