Hanwha Co., Ltd. Sells Stake in Cluster Munitions Business (Comprehensive)

[Asia Economy Reporter Park So-yeon] Hanwha Corporation announced on the 2nd through a public disclosure that it will sell 312,000 shares out of 400,000 shares held in Korea Defense Industry Co., Ltd. (hereinafter KDI), a newly established company spun off from the cluster bomb business, to Defense K Co., Ltd. for 7.8 billion KRW.

Defense K is a special purpose company (SPC) established mainly by employees transferring to KDI. After the sale, the remaining shares will be paid to the employees transferring to KDI in the form of consolation money and other benefits.

Hanwha Corporation conducted a designated competitive bidding process to sell the KDI shares, selected Defense K as the preferred negotiation partner based on proper criteria, and proceeded with the sales negotiations.

KDI's headquarters is located in Sejong City, with approximately 220 employees. Going forward, Hanwha Corporation plans to focus on promptly completing government approval procedures related to the sale of defense companies.