LIG Defense & Aerospace Expands Its Defense M&A Ambitions, Puts Investment Under Strategy Chief [fn Market Watch]

[Financial News] LIG Defense & Aerospace is effectively consolidating its strategic planning and investment functions under one umbrella. Its head of strategic planning has also taken charge of the New Growth Division, which handles corporate and private equity investments, including M&A and CVC activities. The company is seen as having reorganized its operations so that investment decisions—from the Defense Industry Innovation Fund and equity investments in partner companies to overseas joint ventures—are overseen by the strategic planning line.
According to investment banking industry sources on the 9th, LIG Defense & Aerospace began implementing a personnel change this month under which Executive Vice President Jang Dong-kwon, head of the Strategic Planning Office, also leads the investment organization. The organization handles investments in the equity of partner companies and startups, as well as private equity and fund commitments.
Jang is a strategy specialist with broad experience in investor relations and overseas business. After overseeing IR for two years from 2016, he was in charge of overseas planning for about eight years from 2018 through the end of last year, handling export and localization strategies in the Middle East, Southeast Asia and Europe. Since this year, he has been responsible for LIG Defense & Aerospace’s mid- to long-term portfolio and new business strategies as head of the Strategic Planning Office.
The appointment comes as LIG Defense & Aerospace expands its investment activities. The company operates an 80 billion won Defense Industry Innovation Fund with the Korea Military Mutual Aid Association and IBK Capital. So far, it has invested 25.2 billion won in 13 companies, including Davio and LINCSOLUTION, a manufacturer of 3D-printed defense components.
The focus of these investments is securing the defense supply chain rather than generating short-term financial returns. As demands for local production and technology transfers grow in overseas defense markets, strategies linking equity investments in partner companies with overseas joint ventures and joint marketing are becoming increasingly important. This is the backdrop to Jang, who spent many years overseeing overseas planning, also taking charge of investments.
The investment organization is expected to play an even larger role as major investment plans move forward. LIG Defense & Aerospace plans to invest a total of 5 trillion won by 2030, including 1.5 trillion won in infrastructure, 1.5 trillion won in research and development, and 2 trillion won in equity investments.
In 2024, the company acquired research and development infrastructure in Seongnam for approximately 300 billion won and purchased a 60% stake in U.S. robotics developer and manufacturer GRC for 332.8 billion won. M&A and strategic equity acquisitions are likely to emerge as key components of the planned 2 trillion won in equity investments.
Meanwhile, investment banking industry sources interpreted the appointment as a signal that the center of gravity for the investment function is shifting from a financial perspective toward mid- to long-term business strategy. Investments in defense startups and partner companies directly contribute to securing the supply chain and strengthening overseas export competitiveness.
An investment banking industry source said, "Defense is an industry in which localization and supply chain investments follow as overseas orders expand. If someone who understands strategy and overseas business oversees investments as well, it will be easier to execute M&A and equity investments in line with the group’s growth strategy."
[email protected] Kang Gu-gwi Reporter