Hanwha Aerospace Acquires Stake in Domestic Space Satellite Specialist Setrec-i

[Asia Economy Reporter Ki-min Lee] Hanwha Aerospace announced on the 13th that it has signed a contract to acquire shares in Setrec Eye, a domestic space satellite specialized company.

Setrec Eye is a satellite specialized company established in 1999 by the personnel who developed Korea's first satellite, Uri Byul 1. Notably, it is the only domestic company capable of directly developing and manufacturing core components such as satellite bus, ground systems, and electro-optical payloads. As of 2019, Setrec Eye recorded sales and operating profit of 70.2 billion KRW and 9.2 billion KRW, respectively.

Hanwha Aerospace plans to gradually expand its stake in Setrec Eye. Initially, it will acquire about 20% of the issued shares through a new share subscription (58.9 billion KRW) and ultimately secure approximately 30% of the shares by acquiring convertible bonds (50 billion KRW).

Regarding this share acquisition, Hanwha Aerospace explained that in the New Space era, where the main actors of space development are shifting from the government to the private sector, it decided to invest in domestic companies possessing core technologies related to the promising space satellite industry, aiming to secure satellite development technology capabilities and gain technological superiority.

Currently, Hanwha Aerospace is responsible for developing the liquid rocket engine for Korea's launch vehicle 'Nuriho (KSLV-2)' in the space satellite business. Additionally, Hanwha Aerospace's subsidiary, Hanwha Systems, is engaged in manufacturing components such as satellite payloads including Synthetic Aperture Radar (SAR), electro-optical and infrared (EO·IR) systems, as well as some ground segment businesses like satellite antennas and communication terminals. Through this share acquisition, mid- to long-term synergy effects are expected in entering the domestic and international space satellite business sectors.

A Hanwha Aerospace official stated, "Regardless of this share acquisition of Setrec Eye, we will support the current management team of Setrec Eye to continue independent management," adding, "By focusing the capabilities of both companies, there will be many opportunities for business expansion in the satellite sector of the domestic and international space industry."