FSS Requests Correction of Securities Registration for Hanwha Aero's 3.6 Trillion Won Capital Increase

"Inadequate Disclosure of Essential Information Such as Justification and Shareholder Communication Procedures"

On the 27th, the Financial Supervisory Service (FSS) announced that it requested corrections to the securities registration statement for a 3.6 trillion won rights offering submitted by Hanwha Aerospace.

In a notice sent to the press on the same day, the FSS explained, "After a thorough review through face-to-face consultations as part of the focused examination process, we determined that the information provided regarding the necessity of the rights offering, shareholder communication procedures, and the purpose of fund usage was insufficient for investors to make a rational investment decision." It added, "The review process of the company's securities registration statement is ongoing, so it is difficult to disclose specific correction requests." The FSS plans to carefully examine whether the requested corrections are fully reflected when the company submits the amended registration statement.

Hanwha Aerospace announced on the 20th that it would proceed with a rights offering worth 3.6 trillion won, the largest in the history of the domestic capital market. Subsequently, Hanwha Aerospace’s stock price plunged due to concerns over shareholder value dilution, causing a stir in the market.

The FSS is conducting a focused examination of Hanwha Aerospace’s rights offering, following Samsung SDI. FSS Governor Lee Bok-hyun stated, "Given the overall economic slowdown, it is meaningful that companies are making investment decisions amid uncertainty," and added, "We view this very positively and will conduct the review as quickly as possible."