Chairman Kim Seung-yeon Appointed Chairman of Hanwha Aero... Targeting US Defense Market under Trump Administration

Strengthening Defense Industry Projects Using the Dami Network
"Supporting Hanwha Ocean's Global Business Expansion"

Kim Seung-yeon, Chairman of Hanwha Group, was appointed as Chairman of Hanwha Aerospace last month. Analysts suggest that Chairman Kim will play a central role in Hanwha Group's strategy to expand its presence in the U.S. defense market.

According to Hanwha Aerospace on the 14th, the company announced yesterday that Chairman Kim was newly appointed as Chairman of Hanwha Aerospace in the Hanwha Group executive personnel reshuffle on the 1st of last month. Currently, Chairman Kim holds chairman positions at affiliates including Hanwha Co., Ltd., Hanwha Systems, Hanwha Vision, and Hanwha Solutions. The CEO positions at Hanwha Aerospace will remain with Vice Chairman Kim Dong-kwan and President Son Jae-il.

Kim Seung-yeon, Chairman of Hanwha Group. Photo by Hanwha

This appointment has attracted attention as it coincides with the inauguration of the new U.S. administration. It is expected that Hanwha Group will actively expand new businesses by leveraging Chairman Kim’s extensive U.S. network. Chairman Kim has maintained a 40-year relationship with Edwin Feulner, founder of the Heritage Foundation, who advised the Trump campaign on foreign affairs and security. On Feulner’s recommendation, Kim was invited to the inauguration ceremony of President-elect Trump in January 2017. The business community views this personal network as a strong asset for Hanwha’s U.S. defense strategy.

Hanwha Group is aggressively targeting the U.S. defense market with Hanwha Aerospace, Hanwha Systems, and Hanwha Ocean as its core units. In June, Hanwha Ocean and Hanwha Systems acquired the Philly Shipyard located in Philadelphia, U.S., planning to use it as a forward base for maintenance, repair, and overhaul (MRO) operations in the U.S. Hanwha Ocean was the first Korean shipbuilding company to sign two MRO contracts with the U.S. Navy, and Hanwha Aerospace, as the largest shareholder of Hanwha Systems and Hanwha Ocean, oversees related businesses.

Recently, President-elect Trump’s emphasis on cooperation with the Korean shipbuilding industry is also expected to positively impact Hanwha’s plans. In his first phone call with President Yoon Suk-yeol on the 7th, Trump said, "The U.S. shipbuilding industry needs cooperation from Korea," adding, "I believe close bilateral cooperation is necessary not only in ship exports but also in maintenance, repair, and overhaul sectors."

A Hanwha official stated, "We plan to actively expand our business by leveraging Chairman Kim’s global network in military and diplomatic fields related to the U.S.," and added, "He will also play a role in supporting the global expansion of Hanwha Ocean’s business."