Hanwha to Inject 400 Billion Won into U.S. Defense Subsidiary as It Pushes for K9 Howitzer Exports

Hanwha Group is pouring more than 400 billion won into its U.S. subsidiary as it steps up efforts to target the world's largest defense market. The move comes as major wins, including its recent selection as the sole supplier of a prototype for the U.S. Army's next-generation self-propelled artillery program, begin to take shape. It is seen as a strategic bet to secure production bases for land and naval defense systems in the United States and to complete large-scale mergers and acquisitions without disruption.
According to industry sources on the 23rd, Hanwha has recently decided to participate in capital increases at Hanwha Defense USA, its U.S. defense subsidiary, and Hanwha Futureproof, the company set up to invest in strategic assets. The total investment could reach as much as $299 million, or about 415 billion won.
First, Hanwha Aerospace, the defense unit's intermediate holding company, will inject $149 million, or about 206.8 billion won, into Hanwha Defense USA, in which it holds a 100% stake. That is far above the 159.7 billion won it has invested so far. Including the roughly 92.1 billion won it contributed in April, nearly 300 billion won has gone to Hanwha Defense USA this year alone. In addition, affiliates will fully participate in a $150 million capital increase for Hanwha Futureproof, which handles investments in U.S. strategic assets. Hanwha Aerospace will cover half, or $75 million, while Hanwha Ocean, Hanwha Systems, and Hanwha Solutions will share the rest according to their stakes of 18.75%, 18.75%, and 12.5%, respectively.
Industry observers say the aggressive funding reflects a preemptive effort to secure working capital for building production facilities in the United States and expanding local operations.
At the core of this large-scale investment is a surge in orders in the land defense segment.
The most notable recent achievement is the U.S. Army's Mobile Tactical Cannon (MTC) program. Hanwha Defense USA was recently selected as the sole supplier of MTC prototypes, winning a contract worth up to $262.9 million, or about 364.6 billion won. Hanwha will first deliver six prototypes, with 12 more to follow depending on the program's progress. If the system passes field evaluation and moves into mass production, which is expected to involve about 500 units, the total project cost could reach 10 trillion won.
Its push into the naval defense sector is also gaining pace. After acquiring Hanwha Philly Shipyard and establishing a local holding company, Hanwha's next target is Austal USA. Hanwha Defense USA has already submitted a non-binding offer to acquire 100% of Austal USA, valuing the company at between $1.05 billion and $1.2 billion, or about 1.5 trillion to 1.7 trillion won. If the deal goes through, Hanwha will immediately gain access to the core supply chain for U.S. Navy combat ships.
A favorable policy stance from U.S. President Donald Trump, who has signaled support for allowing foreign companies invested in the United States to build U.S. Navy ships in their home countries, is also expected to provide a strong tailwind for Hanwha's maritime business.
[email protected] Kim Dong-ho Reporter